Entrepreneurship and Small Business Management Report - ENTR 101

This report provides a comprehensive analysis of Small and Medium Enterprises (SMEs) and their impact on the United Kingdom and European economies. It begins with an introduction to entrepreneurship and the concept of SMEs, highlighting their development and importance in the UK economy. The report examines the role of SMEs, differentiating between entrepreneurs and managers, and explores the skills and characteristics of successful entrepreneurs, including an analysis using the Big Five model and Maslow's hierarchy. It further investigates factors that influence entrepreneurial success and evaluates the influence of background and experience on entrepreneurs. The report compares the impact of SMEs in different regions of the UK (Scotland and England) and across various sectors (manufacturing and retail). Additionally, it compares the SME impact between the UK and Russia, providing a multifaceted view of small business dynamics and their contribution to economic growth and development. The report concludes with a summary of findings and references used.

Entrepreneurship
and small business
management

Table of Contents
INTRODUCTION...........................................................................................................................1
Task 2...............................................................................................................................................1
a) Concept of SME and its development in the economy of United kingdom...........................1
b) examine and analyse the role of SME....................................................................................3
TASK 3............................................................................................................................................6
1.) Differentiate between the entrepreneur and a manager.........................................................6
2. Explain the skills and characteristic of the entrepreneur........................................................7
a. Entrepreneurial characteristics.-..............................................................................................7
3. With the help of big five models analyse the nam food owner entrepreneurial personality...8
4.Maslow Pyramid with Entrepreneurial characteristics and Entrepreneurial success...............9
5. Various factors that can foster or hinder entrepreneurial success........................................10
6. Evaluation of influence of background and experience on entrepreneurs...........................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Entrepreneurship can be referred as the term of the establishment of business by the
individual or the group of person on the basis of some innovative ideas that can be new to the
market development. The innovative ideas are supported by the government and society both so
to overcome the challenges that are prevailing in the market. The development of such type of
the small business in the economy will enhance the level of growth in the economy. In this
report the statistical data of small enterprise will be there which shoes the development of
economy with help of small business. The comparison between the region of united kingdom of
the effect of the small business along with the comparison of the different sector that is retail and
manufacturing. The comparison is done for the better understanding of the concept.
Task 2
a) Concept of SME and its development in the economy of United kingdom
SME refers to the small medium enterprises which depends on by whom it is defined.
The small medium business enterprise are the business which require less amount of investment
along with works at small scale with fewer numbers of employees. SME business are the
business which are driving growth I economy, creating lot of job opportunity through opening
of new market (Tarhini, and et.al., 2015,) . Through the vital contribution of SME, the backbone
of the UK economy. SME turns to be seedbeds for innovations as they motivate and encourage
the talented entrepreneur to put there ideas against the challenges to compete in competition.
After being the back bone of UK economy, there are still many(almost 50%) small and
medium enterprises that are lacking the financial investment. These companies have the
contribution of 33% in growth of economy along with 45% generation of employment.
Since the 2015, the private sector of the UK economy has 5.5 million private sector bushiness. In
past 5 years, SME's are having the external funding. In the creation of employment, the MSME's
are playing important role as they create the platform to convert there idea into innovation. There
are almost 99.3 % of private sector jobs in which 99.9% were the part of small business started
from the year 2016.16.3 jobs were provided by the private sector in UK economy in which 60%
per given by the small medium enterprises. In the year 2018, the total turnover was £2 trillion.
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The new ideas lead to the innovation and the development of such small medium
enterprises in the economy. In the last 2 years small business in manufacturing industry has
shown the growth of 32% and still has the expectation of the higher growth (Tarhini, and et.al.,
2015,) . In the year 2015. UK the SME's had given the business of 97% in all the sectors of the
economy. In the year 2018, 375 of total turnover and employment of 485 was represented by
the small business.
The government of UK is trying to develop the strategies more growth and development of the
small business by invention the amount of £725 million in the research and development.
There is the huge impact of small and medium enterprise as am major part of the private
sector jobs are accomplished by them in which 50% are expanding over. There are innovator and
non innovators which includes the exporter and non exporter. They all are playing role in the
contribution of revenue in economy.
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From the last couple of years the non employing business is falling by 1% with increase
of the employing business by 2%. The small business has been appreciated and awarded as they
are using the technological advancement such as the artificial intelligence for the development of
there business. This technology will help them in decision-making and strategy development.
During the inflationary pressure or change in economic factors, it became easier for small
business to be flexible in increasing production and manages demand fluctuation. But if there is
change in political factor such as the policy change then there will be negative impact as it
became very risky for small business to bear the loss in the risk of uncertainty. For the
development of small business the government of country have to provide the financial support
with the level of subsidies.
b) examine and analyse the role of SME
A)Impact of the SME in two different regions of United kingdom-
 Scotland
 England
The impact of SME on the economy of both the region is similar as there are some
minute difference due to the change in the different policies and working of different region. The
region as Scotland the small business are having the 98.2 5 were the small business along with it
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1.1% are the medium enterprise whereas region of the England has the 96 % of the small
enterprises and 1.67 % of the medium enterprise. The impact of the same in both the region
turned out be the reason of increasing opportunity in the there respective economy. Due to the
development of the SME in the economy, there is maximum increase in the employment
opportunities.
Due the development of the SME in the both the region, there is major contribution in the
GDP 0of there respective country. The development of SME raises GDP of Scotland by 1.4%
whereas the GDP of the England just rises by .8%. hence, it can be said that in the economy of
the England is less reactive or potential for the small business enterprise (Tarhini, and et.al.,
2015,) .The impact of Brexit was one of the major impact faced by the economy of the both
countries. The economy of the Scotland consisting of mainly small ans medium enterprise found
it more difficult to deal with the impact of Brexit as because of the resources constraint and
uncertainty.
The larger companies in the region of Scotland has the capacity to prepare and put the
relevant strategies to have the contingency plans. As England, the level of the larger companies
are more than compare to Scotland so the larger companies have the capacity over the constraint
of resources for the development of the economy. So the affect of Brexit was more felt on
Scotland and northern Ireland as compare to England and Wales.Due to the development of
SME, it raises the standard of living of the Scotland economy. As become in the region of
England is more developed as compare to the Scotland so the rhe development of SME raises the
standard of living.
B)Impact of small business on two different sectors
The manufacturing and the retail sector are the two different sector of the economy. The
manufacturing sector is somehow relayed to the retail sector. As the good that are produces in
the manufacturing sector get distributed to the consumers through the retail sector. The small and
medium business has entered the market in both sector. As the development of the small and
medium business has taken place both the sector has there respective growth. There were smaller
business in the retail sector as compare to manufacturing sector. As the requirement of the
investment is less in retail as manufacturing. The retail sector there were more employment as
compare to manufacturing sector. In the manufacturing sector maximum work is done by
machinery. As compared to growth rate, retail sector was more successful than manufacturing
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sector. So the contribution of the retail sector in the economy was of £12000 million as the
manufacturing sector has only of £10000 million.
c)The impact of the SME on two different countries of the European union
. The countries for the comparison will be the Russia and united kingdom. The impact of
small business is the economy of the Russia is more accepted than the other European country.
Hence, the European countries are more famous for there technological advancement in the
manufacturing sector as they are taking the small business more to the international interest
(Tarhini, and et.al., 2015,). As compare to the UK the small business is adding more to the gross
income of country. In UK the small business are bring more growth in the retail sector whereas
as the country Russia is more I the technological advancement. The small business in the Russian
economy is to working according to have the sustainable development. But the economy of the
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united kingdom works according to the development of the economy through the sustainable
development.
TASK 3
1.) Differentiate between the entrepreneur and a manager.
Particulars Entrepreneur Manager
Definition A person who have the innovative
ideas and want to develop the
business according to that idea that
helps to overcome the challenges
in the economy. As Steph Croft-
Simon id the entrepreneur having
the idea of the organic popcorn in
the market.
A person who is hire to manage the
responsibilities of controlling and
administrating of a company or an
organization is called as the
manager. The manger will be the
person who will be hire by Steph
Croft-Simon for managing the
business.
Business The business of the entrepreneur is
one which is established by his
own on the basis of there
innovative idea. Steph Croft-Simon
established the business of organic
popcorn named as Nom Foods.
The manager will be the person
which will be hired by the owner of
the Nom food to hire the business.
role The role of the entrepreneur is that
they are the owner of the
organization who has set up the
business . For ex. Steph Croft-
Simon is the owner of Nom Foods.
The role of the manager in the
organization is just a employee. He
will be hired by the owner of the
organization for managing the
administration .
Financial risk The owner has the maximum
financial risk of the organization as
they are the owner if the company
and are responsible for the
The manager of the organization
doe snot have any responsibility in
the towards the financial leverage of
the company. He is only entitled to
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financial reconstructing of the
organization.
the responsibilities according to the
salaries.
reward The reward of the setting up the
organization is the profit earned
from the business in the market
(Tarhini, and et.al., 2015,). The
establishment of the business will
lead to the development of the
suborganisation in the market that
the company can earn the profit.
The reward of the mangers is the
salary to which he is entitled . The
manager only have the salary which
he will receive without taking risk if
the organization .
management The another aim of the owner is to
manage the staff so that the
productivity of the organization
can be achieved in the longer run.
The aim of the business managers is
look after the management of the
organization so that the increase the
productivity through the employees.
focus The owner of the company will be
focus only at the development of
the business so that the successful
implementation can be processed.
The manager of the business will
look after the operation that is being
processed in the organisation.
2. Explain the skills and characteristic of the entrepreneur.
a. Entrepreneurial characteristics.-
there are the characteristics that an entrepreneur should develop to have the success in the global
market against the competitors. The entrepreneur must be risk taker and initiator. There is no
success in the world of there competition if the person is not ready to be initiative. The person
should have the innovative idea and be ready to take risk to compete in the market. There are
variety of risk prevailing in market that a entrepreneur has to develop the skill to bear and
compete that risk(Karadag, 2015). Another characteristic that a entrepreneur should have the
passion. A passionate entrepreneur is the one who is very passionate to achieve the goals and
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objective of the organization. Steph Croft-Simon established the business of organic popcorn
named as Nom Foods The entrepreneur should not be like managers, he should be flexible to
compete in any type of the situation that are prevailing in the market. The managers is one who
is guided by the top-level management.
Entrepreneurial skills- the skill required by the entrepreneur is the one who is development the
business in the long err run for the development of the business. The person should be motivated
to develop the business without making in the back step. The person should be b optimistic
towards the changes that are coming in the market for the longer run. The person should be
innovative as to solve the problem that is prevailing with them in the development of the
business. Steph Croft-Simon established the business of organic popcorn named as Nom Foods
Or on the other hands' manger are of persuasive nature that they cannot handle the work other
than the duties and responsibility that prevail with them. The entrepreneur should be the
knowledgeable so that the can properly plan the development of the organization and the
successful implementation can be done.
3. With the help of big five models analyse the nam food owner entrepreneurial personality.
The big five models is known as the OCEAN model which assess the different aspect of the
personality of the entrepreneur about what are there mindset and personality.
Openness towards the experience- the entrepreneur must be innovative along with the ability of
taking risk(Karadag, 2015). If the person have this skill in the then he will be able to identify the
opportunity which are favourable for the business. At the same time if the entrepreneur is the risk
taker then he will be able to identify the risk which can harm business.
Conscientiousness- the entrepreneur should be cautious along with the risk taker. He should be
aware of the level of the risk he is taking for the business. He should aware of the operational
activities that is taken by the business for the development of the organization. If the person is
taking high level of risk then the company has the risk of taking the downfall acceptability in the
market. The more risk taker entrepreneur will be unrealistic and make the investor less interested
in the development of the business.
Extra version- the degree of the energy that is prevailing within the entrepreneur is necessary
for the development of the business. If the entrepreneur is introvert he would be unable to build
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the relationship network ans cannot develop the better opportunity for the business whereas he
will be extrovert then a beetler relationship can be built among the employee so that better
opportunity can be identified.
Agreeableness- the nature of the entrepreneur comes under the heading of the agreeableness.
The level of friendly and detached in nature is measure( Kozubíková and et.al., 2015). If the
person is more friendly, and then he will be able to have maximum number of relationship that
would be beneficial for the development of the business otherwise the detached nature will
harem the person to seek the better opportunity.
Neuroticism- the degree of sensitivity of the entrepreneur is measured with the confidence . If
the person has the high level of sensitivity then these type of person are used to be more unstable
and weak in the decision-making process of the organization. On the other had the less sensitive
people will be able to have the proper decision-making process and have the more stable in
nature.
4.Maslow Pyramid with Entrepreneurial characteristics and Entrepreneurial success.
The Maslow need hierarchy theory states about the basic principle of undertaking the
business in such way that look forward to the characteristics of the entrepreneur in the
organization . The risk taking ability of entrepreneur will be measured in the term of the Maslow
safety needs. According to the safety need of the Maslow, the entrepreneur must be very careful
about the safety of the organization. The entrepreneur must be the knowing that is the level of the
degree he is taking for the organization to enhance the development for the longer run of the
organization( Kozubíková and et.al., 2015). The entrepreneur must have the level of riskiness
that is efficient for the development of the company.
The entrepreneur must be knowledgeable that come in the basic need of the Maslow
theory. According to which the entrepreneur must have the knowledge for the development of
business in the market. the person is not having the knowledge he will be aware of the task what
has to be performed by the entrepreneur is the development of business.
The entrepreneur must be passionate about the work he is performing in the development
and meeting the aims and objective of the organization. The Marlow esteem needs have the
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content of self-esteem need for the development of the organization. The person should be aware
of the needs and wants to the organization.
5. Various factors that can foster or hinder entrepreneurial success
Entrepreneurial successes are affected by various factors and one must keep all such
affecting factors in mind in order to bring success in the company. Nom Foods can be affected
by various factors in the market are as follows-
Educational factors
Nom Foods who have entered in the market currently should take proper education ans
attend the various training programmes in order to know about the entrepreneurship (Bouazza,
2015). There are various institutions and colleges who provide special education on how to run
businesses, where the competition level is low, how to bring product into the market, how to
differentiate our company product from other companies etc.
Financial status
Nom Foods should present all its financial statement to the public so that the more
customers can be attracted to the company (Karadag, 2015). This will also help the company in
retaining its employees for the company. Company should mainly focus on the cash flows of the
company because generally these are the factors that are examined while evaluating company's
performance.
Demographic Factor
Demographic factor is another such factor which affects the company because location of
every business affects the public. It has been observed that the businesses which are located in
the heart of the city are having higher profits than the businesses who are outside the city. Public
gets more attracted to the businesses who are nearer to the public (Wang, and et.al., 2019). Thus,
Nom Foods should select the location which is nearby to the general public and which can be
beneficial to the company.
6. Evaluation of influence of background and experience on entrepreneurs
According to (Tarhini, and et.al., 2015,) Education factors does no affect the business
because it has been observed that the less qualified entrepreneurs are more successful
entrepreneurs. There is no relation between the education of a person and business done by the
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