Analysis of Entrepreneurship and Small Business Management: Unit 9

This report delves into the realm of entrepreneurship and small business management, examining their significance in the UK economy. It begins by interpreting statistics to illustrate the impact of micro and small businesses, emphasizing their contribution to job creation and economic growth. The report then explores the characteristics, traits, and skills that distinguish successful entrepreneurs, using Mark Zuckerberg as an example. It also assesses how entrepreneurial personality reflects motivation and mindset. Furthermore, the analysis extends to the influence of personal background and experience on entrepreneurship, considering both positive and negative impacts. The report critically examines the ways background and experience influences entrepreneurship both positively and negatively by comparing and contrasting examples. It provides a detailed analysis of how small businesses impact the economy at local, regional, national, and international levels. The report concludes with a comprehensive overview of the key findings and implications for entrepreneurship and small business development.

UNIT 9. ENTREPRENERUSHIP
AND SMALL BUSINESS
MANAGEMENT

INTRODUCTION...........................................................................................................................1
TASK 2............................................................................................................................................1
P3. Interpret statistics for illustration of micro as well as small business on economy.........1
P4. Significance of small business as well as start-ups for growth of economy....................3
M2 Evaluation the difference which is being made by SME’s towards economy.................4
D2: Critically examine how small business have an impact on different levels of the economy
(local, regional, national) and in an international context......................................................5
TASK 3............................................................................................................................................5
P5: Determine the characteristic, traits and skills of successful entrepreneurs that differentiate
them from other business managers.......................................................................................5
P6: Assess how aspects of the entrepreneurial personality reflect entrepreneurial motivation
and mindset.............................................................................................................................7
M3: Explore and examine different lines of argument relating to entrepreneurial
characteristics.........................................................................................................................7
D3. Analyze the characteristic traits, skills and motivational drivers of successful
entrepreneurs, supported by specific examples......................................................................8
LO 4.................................................................................................................................................8

P7. Background as well as experience that can foster or hamper entrepreneurship...............8
M4 Analyze the link between entrepreneurial characteristics and the influence of personal
background and experience to specific successful entrepreneurs..........................................9
D4. Critically evaluating the ways background and experience influences entrepreneurship
both positively and negatively by comparing and contrasting examples...............................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Entrepreneur is defined as a process which is being undertaken by an entrepreneur in order
to organise and manage new business venture with having an aim to make profit while
undertaking risk. With the help of unique and innovative ideas entrepreneur effectively
contribute towards national economic growth (Akehurst, Simarro and Mas‐Tur, 2012). In the
process of entrepreneurship individual develop new business idea while bearing most of the risk
and aim towards enjoying maximum rewards opportunities In United Kingdom entrepreneurs
majorly contributes in employment sector and overall GDP of country. Entrepreneurship is
defined as UK strongest pillar as they not only provide economic support to country but also
provide numerous job opportunities to individuals with an aim to increase their living standards.
Entrepreneur with the use of their unique ideas initiate social change by creating innovative
products and services (Bakeman and Hanson, 2012). In simple terms they are known as world’s
most powerful transformers who undertake risk and develop innovative and unique services and
products in order to provide effect of satisfaction to consumers. Present report discusses different
type of entrepreneurial ventures along with number of entrepreneurial typology. Along with this
report include importance of start-ups and small scale organisation and their contribution towards
nation economy. Background and experience of entrepreneur that hinder or foster
entrepreneurship is also mentioned in present report.
TASK 2
P3. Interpret statistics for illustration of micro as well as small business on economy.
This has been determined that UK has largest economy and major contribution is being
made by small as well as micro scale entities. As per the Department for Business Energy &
Industrial Strategy’s statistical release which has provided business population estimates with
respect to United Kingdom and regions 2019, it has been identified that there are around 5.9
million private businesses across UK till the start of 2019. This also implies that wide range of
jobs have been created which will not only enhance their living standards but will also enhance
employment rate of nation within the international market. In addition to this, small and micro
scale firms efficaciously furnish their contribution within growth and innovation.
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Small:
This has been determined that firms who carry out their functionalities within small scale
have less than 49 employees within their organisational working premises. Along with this, they
are not entitled to have revenue more than £5 million. Furthermore, small scale firm’s acts as
backbone for economy of country as they are liable for furnishing wide range of job
opportunities that will lead to amplify living standards of people. There are 5.82 million small
businesses across UK which implies that there will be relevant impact on economy of country
(STATISTICAL RELEASE, 2019).
Illustration 1: Number of private sector businesses in UK, 2009 to 2019
Medium:
At this level, firms who are involved within medium a firms can hire employees which
are in the range of 50 to 249. Furthermore, it has been determined that such kind of firms can
create a revenue that is the range of £5 to £22 million. The major aim of such kind of entities is
that they carry out their operations for offering effectual satisfaction levels to their consumers so
that their demands as well as needs can be accomplished in an adequate way. In United
Kingdom, there exist near about 35,600 medium sized businesses.
Large:
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Firms who carry out their business operations within large sectors are entitled to have 250
or more then these employees in organisations working place structure. Along with this, large
scale firm are permitted generate or create a revenue of around more than £22 million. In United
Kingdom, there are around 7,700 large businesses. Furthermore, this has been assessed that firms
which are engaged in this sector are liable for offering large scale employability opportunities to
wide range of population that will automatically lead to generation of higher growth of the
nation.
Businesses No. of Firms Employment (in
thousands)
Turnover (in millions)
All firms 5,867,770 27,498 4,149,973
Small 1,366,680 8,322 1,224,176
Medium 35,585 3,473 639,321
Large 7,685 10,868 1,981,968
The above table clearly illustrates the amount of employments that are being provided by
small, medium and large organisations around UK and as per the turnover attained there will be
affirmative impact on overall economy of the country. At the starting of year 2019, it was
identified that within the Office for National Statistics that have been recorded illustrates 2.6
million private sectors have registered for PAYE or VAT which is 45% of entire population.
Furthermore around 3.2 million firms that accounts to 55% have not registered. Moreover, 13%
of sole proprietorships as well as 51% ordinary partnership have been registered for VAT or
PAYE.
P4. Significance of small business as well as start-ups for growth of economy
Micro along with small scale firms has effective contribution within local, regional and
national economy of country in a relevant manner. Organisations who are rendering their
operations as SME aim for satisfying requirements of people within qualitative offerings. Along
with this, it has determined that they are backbone of UK as it covers major industrial segments
of the country. Furthermore, it has been identified that firm renders their customers with
enhanced creativity and innovation which amplified brand image within the international market.
But for this, government of UK has provided various facilities to SME’s like tax rates, export
facilities, etc. The significance has been illustrated below with respect t different perspectives:
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Job creation:
Micro and small level firms render job opportunity to nation by making their effective
contribution and near about 16.3 million people are employed within them. It has been identified
that SME’s efficaciously assist individuals to enhance standards of life by rendering them with
adequate job opportunities. Along with this, it has been evaluated that nearly there are around
60% private sectors in United Kingdom. By carrying out their functions within these segments as
it will furnish adequate employability opportunities which will lead them to have relevant
enhancement within net income of individuals.
Improve living standard:
Small as well as micro level firms efficaciously render job opportunities to individuals in
local and national scale within provinces of United Kingdom. It has been identified that firms
have relevant role within enhancement of economic growth on country in a relevant way.
Furthermore, this has been identified that through contribution within job employability firms
have relevantly enhanced their living standards. This leads to sustainability of country which will
lead them to have enhanced market shares both within national as well as international
marketplace at greater extent.
Economic growth:
It is crucial aspect which has been furnished by small and micro scale organisation across
the country. It has been evaluated that firms efficaciously contributes within enhancement of
overall growth. In addition to this, they have relevant place within market as around 80% of
market of UK covers SME’s.
From above discussion it has been identified that micro and small level firms
efficaciously contributes within national economy of United Kingdom. This will also lead to
enhancement of market holding capacities of organisations within the international marketplace.
M2 Evaluation the difference which is being made by SME’s towards economy
This aspect has been clearly understood by statistics illustrated above. The large
organisations furnish a turnover of £ 1,981,968 millions which is a huge amount. Medium sized
firm’s returns a revenue of around £ 639,321 millions and small firms render around £ 629, 163
millions. The overall turnover is near about £ 4,149,973 millions which is a huge figure and will
make enhanced contribution within the growing economy of United Kingdom. Each small,
medium and large firm make effectively contribute within financial aspects of the country.
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D2: Critically examine how small business have an impact on different levels of the economy
(local, regional, national) and in an international context
UK private initiatives have different effects on the country's economy at different levels. At the
regional level, independent companies can struggle with the same types of organizations by
providing quality items and administrations that more easily meet customer needs. These
organizations focus on hiring lower paid workers due to lack of accounts and implementing
people with lower skills than others, which is helpful in reducing unemployment. At a national
level, this association can expand into different areas of a country and develop an age of income
that authorizes them to bear a higher promotion cost in the country. Globally and globally, a
large number of small companies export their products and administrations and set up branches
in several countries. It is useful for obtaining external funds that contribute to the country's
development.
TASK 3
P5: Determine the characteristic, traits and skills of successful entrepreneurs that differentiate
them from other business managers.
In order to become a successful entrepreneur a person required numbers of specific traits
and skills because through it they can conduct their venture operations and functions in effective
manner as well as that will help them in making entrepreneurial unit successful (Bangar, 2020).
An individual can get charactierstics; traits as well as skills through two methods such as by
attaining good coaching session or it can be by birth. Around the world there are numbers of
successful entrepreneurs’ which show that innovative idea and dedication help a person in
attaining succession at the marketplace and it can be possible through their specific skills,
characteristics and traits. Below some main characteristics, traits and skills of a successful
entrepreneur i.e. Mark Zuckerberg is given:-
Mark Zuckerberg is known as an American Internet Entrepreneur, he born in 1984 at
United State. He is co founder of facebook which is one of the widely used social networking
sites. He has numbers of specific characteristics, traits and skills which help them in attaining
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their desire goal as well as objectives, below some of the main characteristics, skills and traits are
given:-
Characteristics
 Flexible – It is essential for an entrepreneur to always be flexible because through that
they can adopt new idea, technology or process in effective manner which help them in
attaining desire goal (Chtioui and Dubuisson, 2020). Similarly, Mark Zuckerberg also has
flexible characteristics which help them in adopting change according to time duration.
 Passionate – It is main characteristic need to have in entrepreneur because that will
encourage them to adopt need as well as challenging ideas or strategy which can result
them in attaining desire outcome. In respect of Mark Zuckerberg it is also passionate
which help them in conducting work effectively for attaining desire goal.
Skills
 Leadership skills – Through this skill a person can conduct their work effectively as well
as leadership skill also helps them in guiding other so that they do their allotted work
properly (Farahani and Alvandi, 2020). Mark Zuckerberg has respective skill which helps
them in guiding as well as leading their subordinates so that they conduct their work
properly which leads to attainment of desire goal.
 Innovative thinking – An entrepreneur always need to think innovative as that will help
them in attracting as well as retaining customers with them for life time. In respect of
Mark Zuckerberg he has innovative thinking which can be determined with the idea of
facebook through which people get connected from different locations.
Traits
 Strong work ethics – It must be traits of an entrepreneur that they must adopt as well as
follow ethical practices as that will help them in be owner of a successful business with
high goodwill at market. Mark Zuckerberg conducts their operations in full ethical
manner as well as he also ensures that operations are conduct ethically and legally.
 Initiator – According to this trait entrepreneur must be imitator as through that employees
feel motivated and encouraged to adopt new things (Jones and et. al., 2020). In respect of
Mark Zuckerberg he is initiator which helps them in adopting change as well as
motivating employees in effective manner.
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These are main characteristics, traits and skills of Marks Zuckerberg which help them in
developing new entrepreneurial venture to make an effective as well as successful place at the
marketplace.
P6: Assess how aspects of the entrepreneurial personality reflect entrepreneurial motivation and
mindset.
Different entrepreneur reflect different types of cultural background, lifestyle and
upbringing. Below two examples are given in respect of same:-
Mark Zuckerberg
The family background of Mark Zuckerberg is not much strong but it will not hinder him
because parents of Mark is very supportive as well as understand they also want that Mark get
succeed in his career. His parents see interest of Zuckerbeg in computer and for that they also
arrange tutor for him; this will help Mark in enhancing their interest as well as skill. Through this
he comes up with innovative idea of facebook.
Steve Jobs
Family back ground of Steve Jobs is working class couple who encourages and motivates
their child to do innovative things. He conducted his graduation from the Homestead high
school, California (Kolb, 2020). Respective school support Steve Jobs in making personal
computer which motivates them. This situation seem as foster for him as he feel motivated that
everyone surrounding to him motivating them as well as he also feel encouraged due to which
they come up with new as well as innovative idea of personal computer. Along with this Steve
Jobs also have several traits, characteristics and skill which help them in performing their take in
effective manner such as innovation skills, communication, passionate and many more.
M3: Explore and examine different lines of argument relating to entrepreneurial characteristics.
Mark Zuckerberg is one of the well known entrepreneur who is co founder of widely used
social networking site i.e. facebook. In order to be successful in his life, characteristics and mind
set play major role such as he has character of be passionate and flexible which help them in
coming up with new as well innovate idea (Nheta and et. al., 2020). Along with this, Zuckerberg
mindset is that in order to attract audiences company always need to introduce new things
according to which he introduce new as well as attractive features in the facebook application.
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D3. Analyze the characteristic traits, skills and motivational drivers of successful entrepreneurs,
supported by specific examples
Rana Harvey created the Monster Group that evolved very quickly and Rana Harvey had some
of the skills and qualities involved. She is highly motivated and motivated to keep the business
going and, as a scientific expert, she maintains the business as a research structure so that it can
operate in a sustainable way without running out. He is self-confident and in control to put an
end to his mistakes. Link can manage work without any help. Coupled with this, it can ensure
that the assets of organizations thrive and be assigned to various businesses. It can plan the future
and ensure risk management approaches and control activities. Zac Williams is the owner of
Grad Touch who offers help with agents and advises associations to find talented employees. He
has a lot of letters in acquiring customers and has the ability to take risks to start the business.
Coupled with this, he has imaginative thinking with which he can help apprentices find a
reasonable line of work, as well as provide competent representatives to organizations. He also
has a great incentive to manage the risks and plan the activity along with the board's ideas.
LO 4
P7. Background as well as experience that can foster or hamper entrepreneurship
This has been evaluated that entrepreneurs believe that experience and background has
critical role in the way they render their services. These aspects with respect to entrepreneurs
have been specified beneath:
Mark Zuckerberg:
 Back ground: Mark Zuckerbergg was born on 14th May, 1984 and is former student of
Harvard University. With the assistance of few friends they have launched Facebook on
February 2004. Mark is president, chief executive officer as well as youngest billionaire.
 Experience: While studying, Mark has developed a program named Course Match that
aids users within making class selection decision depending on choices of students. Then,
Facemash was invented for identifying attractive individual within the campus. After this,
Facebook was launched.
Steve Jobs
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 Back ground: Steve Jobs was born on 24th February, 1955 in California and was
adopted by Clara and Paul Jobs. Steve was mechanist who fixed cars and it was opted by
them as a hobby. By seeing the gap within computer market brought in a zeal within him
to work within this area.
 Experience: Steve Jobs have enrolled within Hewlett-Packard explorer club where they
saw first computer and was impressed by this. Summer internship was taken up by Steve
at HP. Through the assistance of Woznaik, Steve formed their company in 1976 named
Apple Computer Company.
M4 Analyze the link between entrepreneurial characteristics and the influence of personal
background and experience to specific successful entrepreneurs.
Entrepreneurial characteristics illustrate the ability that is being possessed by
entrepreneurs. The background creates a relevant impact on ways in which individual carry out
their services. For an instance, Steve Jobs remember their father like very skilled person who
worked with their hands. This lead them to do their things by themselves. The other instance can
be taken into consideration i.e. Mark Zuckerberg like his father utilised the program made by
Mark in their dental office which motivated him to ensure that adequate programs or software
are being developed by him which will aid them to serve different requirements. This clearly
illustrates that there is a strong association in between background as well as experience that is
attained by them.
D4. Critically evaluating the ways background and experience influences entrepreneurship both
positively and negatively by comparing and contrasting examples
The essence and experience of an individual can influence a company in a positive and negative
way. Rana Harvey and Zac Williams encouraged the creation of a business and managed various
problems for its development. They receive effective help from colleagues to motivate
themselves and manage the association. There are a number of organizations that cannot earn
more money because of a waste agency and the lack of incentives to continue development. A
disappointing experience in the past can affect a business. In the remote possibility that there is a
solid financial base and support, at that stage they can face the challenge of starting and running
a business successfully.
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