Report on Entrepreneurship and Small Business Management: An Overview

This report delves into the realm of entrepreneurship and small business management, analyzing the significant impact of micro and small businesses on the UK economy. It explores their contributions to employment, economic growth, and turnover, while also examining the importance of startups in fostering a robust social economy. The report highlights key entrepreneurial characteristics and skills, differentiating them from those of organizational managers, and assesses the factors that either facilitate or hinder entrepreneurial success. It also provides a comparative analysis of small, medium, and large businesses, along with their respective impacts on various levels of the economy, from local to national. The report also includes case studies of successful entrepreneurs and the application of relevant theories or models.

Entrepreneurship and
Small Business
Management

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 2............................................................................................................................................3
P3 Impact of micro and small business on economy.............................................................3
P4 Importance of small business and start up for the growth of social economy..................6
TASK 3............................................................................................................................................8
P5- Entrepreneurial characteristics and skills which makes them different from organisational
managers.................................................................................................................................8
P6-Entrepreneurial Personality Aspects and evaluating co-relation between entrepreneurial
characteristic and it's success...............................................................................................10
P7- Factors fostering or hindering entrepreneurial success..................................................12
CONCLUSION..............................................................................................................................13
REFERNCES.................................................................................................................................15

INTRODUCTION
Entrepreneurship refers to the process by which an individuals launch and manage their
business and industrial enterprise. On the other hand, entrepreneurs are the ones who risk and
invest their own capital into business and industrial ventures. However, they plays a vital role in
the development of UK economy as they provide enormous employment opportunity for
individuals which directly reflect over increase in Gross Domestic Product and enable firm to
acquire wealth maximisation (Burns, 2016). At the same time, small business also has an integral
role within an economy as they takes an initiative to contribute towards local economies by
bringing growth and innovation to community in which enterprise is established, This report
encompasses the concept of entrepreneur along with different types of entrepreneurial venture
and its typology. Moreover, role of small and micro business over economy growth as well as
comparison of two different entrepreneurs and analyse their successful stories with the
application of relevant theories or models is also discussed here.
TASK 2
P3 Impact of micro and small business on economy
These both regarded as an essential element for the growth of nation economy as mainly
focus over innovation, diversity and flexibility. In simple terms, SME is a business with fewer
than 250 employees and a turnover of less than € 50 million or a balance sheet of upto €43
million . Within this umbrella, there are three different categories i.e. medium – sized, small and
micro businesses as well as these categories are defined by turnover. Along with this, SMEs
make up around 99 per cent of all business operating within UK, and are therefore enormously
integral component for UK economy (Scarborough, 2016). Millions of people work in SME and
they are generally seen as key engine of growth and sustainability. On the other hand, micro
business has fewer than ten manpower and either a turnover of upto € 2 million and a balance
sheet total of up to € 2 million. However, it has impacted over UK economy in several areas
which is explained below:
On the basis of employment: Small and micro business plays a significant role in
enriching life standard of community or society as they takes an initiative in providing enormous
employment platform as its percentage increases to 48% from the past 5 years. By this, they can
easily provide increased level of satisfaction as well as enlarge their market share in a better way.

On the basis of growth: In current scenario of UK, its business is enhancing day by day
which provide direct contribution to economic growth. However, it is regraded as the main driver
for generating employment, adapting innovation that enable companies to improve their overall
performance among other competitors. Moreover, all these actions help UK economy it enlarge
their GDP rate as well as can cope with all financial crises for attaining best positioning within
industry (STATE OF SMALL BUSINESS BRITAIN REPORT .2018).
On the basis of turnover: As small and micro business are expanding their business
operation across the UK, it helps them to control the turnover rate of an individual as well as
makes them more flexible to adapt innovation or novel ideas in order to gain competitive
advantage in a productive manner.
In the UK, there are some trends which is being important for industries to consume such
as shifting demand & supply and fluctuation in selection of prices. These level of trend has
happened due to political imbalances and economic situation. In UK, due to political imbalance,
industries are in burden to pay more to initiate demand & supply of the good or services. Brexit
is one of the critical reason for price based issues of goods or services.
Impact of SME for two UK region

From the below shown diagram, it has been drawn that in UK 2018, there was 1059
business per 10,000 residents adults. Along with this, in London there were 1563 businesses per
10,000 residents whilst in North East were 749 businesses per 10,000 residents.
Impact of SME on industry

In 2018, there 4.2 million businesses in service industries, three quarters of all business in
UK. The biggest of service sector in terms of number of enterprise was the professional,
scientific and technical industry which accounted for 14%of contribution. However, business in
retail sector alone brings 19%of employment and 34% of all turnover in 2018. On the other hand,
manufacturing firm contributes 5%of businesses, 10% employment and 14%of turnover (UK
SME DATA, STATS AND CHARTS. 2019).
Impact of SME’s for two EU countries
For going to the start up of any business, it is being necessary to decide region such as
from the EU consists of France and Germany which are highly developed countries. These two
nation have high potential and regulation for industries into the defined manner. SME is mainly
oriented towards development of an economy and pursues growth for people and risen up of the
employment for the people in these two nation. France and Germany are two known nation for
their hands in the technology and how they given technological strength for the development of
the business operation. Thus, the impact of SME will be positive for this two nation such as
France and Germany with purpose of accomplishing business strength in sector of start-ups.
France and Germany both are known for its emerging and necessary contribution towards the
technology and which is derived as an opportunity for SME's to operates into the own region.
Hence, its an opportunity for SME to brings about long term development and adopt
strategies for SME to be convert into big regions.
Thus, from the above displayed diagrams it has been understood that small business plays
a vital role in every aspect i.e. within country, region, industries and many more as it takes an
effort to render enormous platform for employment, acquiring novel ideas which enrich life
standard of community or society in an impressive or productive manner.
P4 Importance of small business and start up for the growth of social economy
Social economy examines how society norms, ethics, emerging popular sentiments and
other social philosophies influence consumer behaviour and share public buying trends. Start up
company are defined as newly established, innovative companies with a service life of up to 2
years and a maximum of 10 employees. However, big businesses may dominate or capture best
positioning or stock in the market, but it is a small enterprise and start up that keep our economy
moving in a productive manner. Along with this, they create job opportunities and drive
economic growth in smaller geographic areas. Therefore, small and start up firms has crucial role

in the growth of social economy. As consumer taste and preferences are dynamic in nature which
keeps on changes based on market trend, thus small and start up companies are main key drivers
who work towards to generate positive perception among customers. Some of the influence
which it brings over UK social economy are as follows:
Competition: Small business inject new competition among companies as it encourage
them to adapt innovative technologies or novel ideas. Along with with help them to evaluates
market trend and motivate firm to implement corrective course of action in order to gain
competitive advantage (Burns and Dewhurst eds., 2016).
Local Hiring: Start up firms mainly operates over locally, which assist them to render
various employment opportunities to individuals which improve the life style of community or
society and aid them to generate positive perception towards company and it enhance their
overall performance.
Diversity: These business are also well known for its flexibility as it take an effort to
examine exact scenario of market and makes more diverse in form, function, culture and
potential than large cooperation. However, the greater diversity within an economy, the easier it
is for them to withstand tough conditions.
Fulfil social purpose: Under this, small and start up organisation are mainly focus to
accomplish social aim or purposes in order to generate positive relationship with them. In this,
entrepreneur takes an attempt to render various social needs like providing education facilities,
empowering women, fulfilment of basic amenities etc. that add value to enterprise in an
innovative or creative style (Julien, 2018).
Therefore, small and start yup firm are biggest players among social economy who takes
an contribution to enrich life standard of community as well as improves their satisfaction level.
M2 Difference of small, medium and large business
There are several types of organisation within economy which contain unique set of
purpose and roles. The difference between these business are as follows:
Small Medium Large
In this, equity held by founder
or family.
Under this, it is established by
privately held i.e. family and
few with public.
Mostly public investor held
equity.

Limited personnel
development opportunities
Personnel enhancement
limited to key employees.
Multiple career enrichment
paths and programs.
D2 Impact of small business on different level of economy
However, small business has a significant role on various level of economy which are as
follows:
Local: It enhance their market share by generating new jobs and attempts to enrich the
living condition of local community in better way. There are some ways which they enhance i.e.
community identity, involvement, health , benefits and many more that improves their perception
level towards firm (Storey, 2016).
Regional: They constitute an important part in economic development of any country,
region, and contribute considerably to regional economic development by creating employment
opportunities, providing investment platforms and forming economic capital as well as potential
required for sustainable economic growth.
National: Under this, it enable nation to follow all procedures and policies in an
appropriate manner as well as implement corrective course of action in order to bring increased
level of satisfaction among customer and it enrich profit margin (Schaper, ed., 2016).
TASK 3
P5- Entrepreneurial characteristics and skills which makes them different from organisational
managers
Entrepreneur is a person seeking opportunities for managing business in an efficient
manner by taking calculative risks, having a sole objective to gain success. Steph Croft, founder
of a Nom foods is a brilliant example as an entrepreneur. She identified vast opportunities
prevailing in FMCG market, which helped her in developing a plan to introduce first organic
popcorn in the market of UK. Requirement of certain characteristics, traits and skills are needed,
as to gain success by an entrepreneur.
This term “entrepreneur” is very different from a manager, it can be understand by following
table:
Basis of Differentiation Entrepreneur Manager

Passion Entrepreneur are passionate
towards their duties and tasks,
their aim is profit
maximisation.
Whereas, manager is always
highly motivated so as to
conduct operations in an
efficient manner.
Reward Reward for willingly taking
calculated risks in an
enterprise are profits.
On the contrary, salary
received by manager for his
rendered services, is
considered as a reward.
Innovative Entrepreneur is a broader term
as compared to a manager. An
entrepreneur is a creative
thinker and a innovator which
aims for profit maximisation,
by developing new techniques,
in order to improve working of
an organisation.
On the other hand, managers
stick with traditional methods
of operations, and is averse to
changes made within an entity.
Characteristic of an Entrepreneur:
Risk Taker- Entrepreneur is prepared to risks, there is a chance for failure but also a vast
scope and possibility for success. Risks are considered as a challenge by entrepreneurs. In
context of Nom foods, Steph Croft took a calculated risk, by analysing needs of prospective
customers to introduce a organic pop corn in target market, in order to make significant profits.
Entrepreneur of respective company not only has managed to pulled some shocking stunts, but
also has made many losses in order to earn this position. These characteristic makes her different
from that of a manager. As a manager, seeks to avoid risks and focuses on the stability of a
entity, whereas, in order to achieve a good position in target market, entrepreneur is always
looking for new challenges and opportunities, in order to obtain benefits from that situation.
Leadership- Vision to identify opportunity where a manager and related people in
organisation see barriers, chaos and confusion, makes an entrepreneur a leader of an entity.

Conducting operations in an effective manner, delegating duties to members of respective entity
makes Steph Croft a good leader.
Traits of Entrepreneur:
Optimistic- It is an essential characteristic of an entrepreneur. Steph Croft, positive nature
outlook towards activities conducted and performed has helped her in achieving massive success.
The inner drive to succeed, has helped her to see a big picture in frame, by identification of the
needs and wants of customer. Thus her passion, to serve healthy food to it's buyers, has resulted
in creation of organic Nom popcorns.
Passionate- One of the most important traits of an entrepreneur is that they love their
work, and is very passionate about their working style. This trait instils within an entrepreneur, a
sense of dedication towards their duties and encourages them to perform for the welfare of
organisation, through which it can achieve objectives and goals of respective company. Passion
of Steph Croft, has lead Nom foods in obtaining increased efficiency which has resulted in more
profits.
Skills of Entrepreneur:
Creative Thinking-It is an imperative and important skills which is found within an
entrepreneur. Steph Croft came up with the idea of catering to the needs of health conscious
people by developing organic popcorns for them. By this, she was able to grab attention of large
numbers of customers, by indeed providing them with customer satisfaction. On the contrary,
managers looks to stick to proprietary systems and methods for working This particular skill
creates a distinction between managers and entrepreneur of an entity.
Time Management- Effective management of time is one of the important skills that is
possessed by a entrepreneur. This skills helps a entrepreneur in carrying out activities of the
respective company in a timely manner, through which Steph Croft has gained enhanced
productivity in working business environment.
P6-Entrepreneurial Personality Aspects and evaluating co-relation between entrepreneurial
characteristic and it's success
Every individual has a unique identity and carries his own personality which
differentiates him from others. These skill set helps him attain pre-determined objectives and
goals within a definite time period. Steph Croft, founder and owner of Nom foods has the

following skills which benefits her in gaining increased productivity and more profits. The Big 5
model determines personality of an entrepreneur, as follows:-
Openness- This personality of an entrepreneur benefits him to collect more knowledge,
out of his curiosity and willingness to learn on a continual basis. This model of personality
describes how flexible is an entrepreneur to changes prevailing in the organisation, his curiosity
to learn. In addition, these traits also describes the creativity, imagination, mindset, tolerance and
innovation level of an entrepreneur.
Conscientiousness- For conducting operations of a business in a systematic way, it
becomes essential for entrepreneur of Nom foods to be persistent, punctual, organised and
responsible in their way of working to accomplish desired objectives and goals in an timely
manner.
Extraversion- These type of individual are very outward in nature and possess a very
good command over their communication. Entrepreneur under this model are very assertive in
nature, cheerful, carries a positive attitude and are true leaders which are willing to take risk, so
in order to achieve organisational objectives and goals.
Agreeableness- It is vital for entrepreneurs to be agreeable in order to conduct business
operations efficiently. This trait helps a entrepreneur in collaborating with it's members and
maintain a healthy relation with members and stakeholders of a company.
Emotional Stability- Entrepreneurs possess certain skills like confidence, stress handling
which benefits him/her to deal with a particular barrier/situation in a right manner. This aids him
to avoid negative emotions and exercise control over their feelings in order to control their anger
and frustration.
On the basis of above discussion, it has been evaluated that Steph Croft- Simon was having
Openness trait of personality. This can be said because she was open to new idea and has a
curiosity to produce health related food products to serve it's customers. By this, she was able to
experiment and apply her creative thinking as to develop organic popcorns in order to cater to
masses. This trait has helped to her, to converting a idea into reality.
Maslow's Pyramid:
It is a theory which proposes that every individual has a hierarchy of needs. These needs
are classified into 5 stages. On satisfaction of one need, the value of it gets diminished. In order
to move to another level of need hierarchy, entrepreneur needs a sense of motivation. These 5

stages of need hierarchy helps in finding correlation between characteristics of an entrepreneur
and entrepreneurial success,as follows
Physiological Needs- In regard to Steph Croft- Simon, founder of Nom foods was so
passionate that she able to give up her sleep, in order to develop a food recipe that can market
health conscious people at a large scale. Thus, it helped her in developing Nom porcorns that
took years of hard work. When the respective product hit the target market, she was so busy
making collaborations with grocery store and investors, that sometimes she could not afford to
go home and for a certain period and had to sacrifice healthy home cooked food.
Safety Needs- Steph Croft Simon was so passionate about her dream to provide quality
and healthy food to customers, that she moved out of her comfort zone in order to persue her
passion and gain success in a field in which she possessed interest. She believed that probability
of failures would not strike her idea of success.
Love Belonging Needs- This need of hierarchy includes feeling of love, social
belongingness etc. Steph Croft to make her dream come true, and to bring Nom Foods into
existence in the early phase was not able to find enough time for family and friends. Her
assertiveness and passion is what has made respective entity successful.
Self- esteem needs- Steph Croft Simon is a highly confident individuals who organised
meeting and conferences at regular intervals in order to gain respect and regard from
stakeholders of respective venture.
Self- actualization needs- These needs come on top of the priority of an entrepreneur
hierarchy need, whereby Steph Croft Simon, founder of Nom foods and popcorns makes use of
her imagination and creative thinking while developing new products and reaching at clear
decisions that ensures success of venture.
P7- Factors fostering or hindering entrepreneurial success
Entrepreneurs are the people who have new ideas to work on and come with new
business. There are any entrepreneurs who have knowledge about different aspects which is
fruitful for their career growth and development. While starting career as entrepreneurs, there are
different factors which has gives positive and negative impact on their business idea of
individual. For making business idea successful, there is requirement of specific education
background, financial assistance, experience, etc. This assist to know what can be done through

which business idea can be successful. Some factors are discussed about Steph Croft- Simon
which works as hinder and foster for their entrepreneurial career.
Education- Education background of Steph Croft- Simon is strong. As she complete her
education from Bristol University pursued education in field of sociology. After completing her
classes, she used to go for teaching A level candidates for the field of sociology. This is foster for
Steph Croft-Simon as she completed her education. This assist her to get in touch with people
and creates awareness about their new type of organic biscuits.
Background- Background of Steph Croft-Simon is good. She belongs to middle class
family where her parents promote her to study. There is lack of financial assistance in order to
launch his business. Steph Croft-Simon sometimes face lack of family support so this is hinder
for business. Business idea to start business enterprise as Nom Food Limited is generated
because of own health issues. Hence family background of Steph Croft-Simon is not from
business class, so there is difference in mindset of family members which affects working style
in initial years of launching business.
Experience- Experience of Steph Croft-Simon is from science background as she
conducted bachelors in Science background i.e. B. Sc. She have experience of teaching to A
level students in sociology which assist her to get some financial assistance for growth and
development of business. Working experience of Steph Croft-Simon is related to food and
beverages sector as contractor at SESA snacks Incubator. This assist them to have complete
knowledge about ways of production, different suppliers, etc. But at the same time she was free
lance consultant, hence she have good networks with people. Hence she is able to communicate
with different individuals and communicate about business ideas. So working experience and
network with people is foster for business plan of Steph Croft-Simon i.e. Nom Food Limited.
Critically evaluation of background and experience on entrepreneurs
It is clear that business idea of Steph Croft-Simon is generated through this own health
issues in which she is facing allergy because of fast food from different outlets. This allergy is
happening at extreme level, hence Steph Croft-Simon started his own meal as snakes at home.
This is her favorite part time job. There is positive responsible from friends and family regarding
taste, so she started thinking regarding other people which are facing same problem. Hence this
is positive point which makes her to launch Nom food Limited in industry. This gives nutrients
and refined foods to other individuals keeping in mind regarding improving eating habits. But

there is lack of financial assistance for launching business and conducting more experiments for
getting best. In initial days of starting business, Steph Croft-Simon face problem for getting
manufacturer who deals in organic sector as she did in her kitchen. Hence her background affects
her business ideas because of lack of financial assistance and she have to work in teaching sector
as well. But experience as contractor as WSEA snacks Incubator assist to make contacts with
different groups such as UK food entrepreneurs and she is able to launch Nom Food Limited
successfully.
CONCLUSION
It has been stated from this report that entrepreneur are the greatest pioneer in today's
competitive world who takes initiative in adapting innovative or novel ideas in order to acquire
sustainable profitability in a better way. Along with this, there are various types of
entrepreneurial venture who contains unique set of roles within industry for the enhancement of
nation economy. Along with this, it has been proved that small enterprise are also contributing
towards an enrichment of economy as they render enormous platform for employment which
helps them to raise life standard of community or society. Furthermore, various entrepreneur has
been proved from their life story that being flexible and innovative is the core key for success
and this is what makes them different from manager.

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UK SME DATA, STATS AND CHARTS. 2019. [Online]. Available Through :
<https://www.merchantsavvy.co.uk/uk-sme-data-stats-charts/>.
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