Entrepreneurship and Small Business Management: A Report

Desklib offers solved assignments and past papers to help students succeed.

Entrepreneurship and Small Business Management
1

Table of Contents
Introduction................................................................................................................................3
LO2: Report...............................................................................................................................4
Introduction............................................................................................................................4
How micro and small business impact on the country...........................................................4
Impact on the national economy............................................................................................4
Impact on the regional and global economy..........................................................................5
Importance’s of the SME’s....................................................................................................6
Hospitality industry vs E-commerce retail trade....................................................................8
The Czech Republic and Slovakia.........................................................................................9
Conclusion..............................................................................................................................9
LO3: Essay...............................................................................................................................10
Conclusion................................................................................................................................15
Reference List..........................................................................................................................16
2

Introduction
One of the major achievements that every economy has been the introduction of small and
medium-sized businesses, which has helped the countries to increase the GDP and allowed
the people have a better standard of living for the people (Ramachandran 2016).
Entrepreneurship is associated with creating a business enterprise allowing extenuating and
dealing with the issues of the society so that the main target of the companies is to increase
the global significance and this is one of the major inclinations of the young minds around the
world (Galloway et al. 2019). The study will be focusing on the different techniques of
effectively managing an entrepreneurship and that too even while developing the
entrepreneurial skills among the people. The impact of different levels of businesses and
various entrepreneurial ventures will be shown and documented in the study as well. The
study will help to identify and demonstrate the various entrepreneur's outlook and
environmental factors that can obstruct or encourage entrepreneurship in a certain
environment of a country.
3

LO2: Report
Introduction
The market of the United Kingdom has been growing because of the small and medium scale
business, which is primal to the contribution of the overall economy. This part of the study
will help to assess and interpret the information of how micro and small business have an
impact on the economy as well as will understand the importance of this type of companies in
the social economy.
How micro and small business impact on the country
The small scale, micro and mid-sized organisations have been developing every day and have
been a boon to the market of the United Kingdom. These types of companies have been able
to contribute significantly to the GDP of the country and have helped in the increase in
employment (Crowther and Seifi 2018). The Government of the United Kingdom is trying to
help this companies excel in the market and these companies have been emerging since then.
The small scale and medium-sized businesses existing within the country is the backbone of
the economy of UK and these companies have been able to increase several job opportunities
for the people, work in different markets around the world and increase the growth.
According to several types of research that been conducted till date, it was found out that the
small and medium-sized businesses have impacted heavily on the market of the United
Kingdom and has helped to increase the economy of the country within a few years (Dees
2017).
Impact on the national economy
There has been a rise of 11569 SME’s in the United Kingdom, which has resulted in more
than 11 % of the increased sales of the product and services and 23% of the GDP of the
country (Julien 2018). In the modern time, the small and medium-sized businesses of the
United Kingdom have been contributing to more than 196 billion Euros to the GDP of the
country and this has been seen among some of the specialised cities of the country. The
Greater London, Manchester and Leeds have been facing this kind of impact from the small
and medium-sized businesses (Masrani et al. 2018). There has been an increase in the values
4

among the markets of Greater London and Manchester and it was seen that there was an
increase by 15% in Greater London whereas it was about 11.5% in the market of Manchester.
Being the capital of the country, London is one of the posh areas for businesses to prosper
and it is one of the busiest places in the whole of the United Kingdom (Morris et al. 2018).
This is where the companies are able to build the market and this has been done by the small
and medium-sized businesses who have contributed to nearly 196 billion Euros to the country
and 75 billion Euros to London itself.
This type of businesses is growing rapidly, especially in Greater London and it is expected
that the revenue will reach almost 200 thousand billion Euros within the year 2020.
According to several journals, it has been seen that 76% of the small and medium-sized
businesses have contributed to the economy of the United Kingdom and it is estimated that
these organisations will be increasing to 534035 companies in the midst of the United
Kingdom within 2020 (Aikens and Peterson 2017). Within the last 5 years, this type of
companies has been able to increase employment among the people around the cities of
Manchester and London and it is expected that this kind of growth will enhance the
professional and administrative services. This kind of services may include accountancy
firms, retail firms, health firms and educational firms. In the year 2015, there were only 5.7
billion private sector businesses in the UK out of and it is expected that this number will rise
to almost 2.2 billion companies in 2020 (Amelung et al. 2017). It was evident that the small
and medium-sized businesses have increased the employment by 41000, which almost
comprised 93% of the private entrepreneurship. Therefore, the above-mentioned facts can
easily define the details of the impact that these companies have brought to the market of the
United Kingdom (Bower 2017).
Impact on the regional and global economy
The local and regional economy is very much dependent on the success of the small and
medium-sized businesses as this kind of businesses provide the people with employment. The
increase in revenue can help the company to focus on eradicating the social issues faced by
the people and if the local economy has the largest concentration of such companies, it can be
beneficial for the local people (Cardon et al. 2017). These type of companies are generally
seen in the large cities of the United Kingdom and this can be proved as in the journal of
(Carsrud et al. 2017) it has been seen that 1519 businesses exist in London for every 10000
residents whereas only 657 businesses exist for 10,000 residents in North Eastern part of
5

United Kingdom. Most of the businesses are located in the London area and in the
southeastern zone of the country (Hong and Yue 2017). The small and medium-sized
businesses have already helped to increase the GDP by 55% recently and it was seen that the
small and medium-sized businesses, as well as the micro businesses, have been able to
contribute to GDP by 94% (Lindh 2017). Within the year 2015, it was seen that the small and
medium-sized businesses have contributed to more than 80% of the total employment and
there has been increase by 40% in the imports and exports as well.
Importance’s of the SME’s
The social economy can be influenced by using collective goals so that the social
development and welfare can be completed by introducing and collaborating with new
enterprises and institutions (Mauer et al. 2017). It is important for the organisations to help
the community to grow as well as serve as non-trading enterprises, focusing on social
development, and generating revenue for the people. Most of the companies in the United
Kingdom are small and medium-sized businesses, which generally invest their earnings so
that operations are fluid and have justified effects (Tietz and Parke 2017). This kind of
business focuses on the welfare of the society and tries to bring on philanthropic results so
that they can increase the living conditions for the people as well as help in the livelihood of
the society.
Legalizing business activities
Every society has people who are related to illegal activities and the small and medium-sized
businesses have been able to reduce the black market activities and have offered employment
to the people related to these trading (Bernstein et al. 2016). However, these companies
follow the rules and regulations of the country during the course of the business and make
sure that the operations to the customers do not violate the prevailing laws. Small and
medium-sized businesses follow transparent business models that also reduce the chances of
influences from other traders and chances of failure in the current market (Bosma et al.
2016). Therefore, the companies always enjoy a symbiotic relationship inside the market.
One of the major businesses that have helped in such activities is the travel and tourism
businesses, which have offered people with employment opportunities and have put a
positive impact on the economy (Byrne et al. 2016).
Generating employment
6

The SME’s have been able to develop employment opportunities for the people in the United
Kingdom. These companies have been providing job opportunities to the people nearby and
this employment has helped in benefiting the social economy (Colombo et al. 2016). With
the increase in employment, there has been a decrease in the social unrest and has helped to
build up the standard of living of the society. There has been 45% of increased employment
within the year 2017 and 2018 and most of it has been done by the SME’s (Davis et al. 2016).
Increase in employment will also increase the GDP of the country and the people will enjoy
the high expendable income.
Assistance to less privileged
The SME’s have been able to affect the economy positively and therefore these companies
have also helped those in need. Some of the small and medium-sized businesses and the
social enterprises have been able to deal with the political and social issues faced by the
people (Holmberg-Wright and Hribar 2016). Some of the factors like hygiene and education
of the people has been taken care of and these companies have focused on spreading
awareness and in mitigating the problems. These companies have also provided the
immigrants with job opportunities and have helped the less privileged people with
environmental awareness, hygiene and proper education.
Environmental sustainability
The SME’s carry on operations in a very sustainable manner and avoid harmful activities that
can directly affect the environment. These types of companies has been able to adopt several
features like recycling and reusing, environmentally friendly technology and energy, and
reduction of wastage, which has helped these companies to make their activities environment
friendly, and reduce the chances of pollution (Ibrahim and Mas’ud 2016). These companies
have been able to influence several other businesspersons to develop products and services
that can help in maintaining ecological balance. It has also helped the local society to enhance
the living conditions of the people by reducing the wastage and minimising environmental
damage.
The effects of SME’s on local areas have been described above. The next part will focus on
the importance of SME’s on the different industries and countries as well.
7

Hospitality industry vs E-commerce retail trade
The hospitality sector of the United Kingdom is rising day by day due to the advent of
tourism opportunities in the country and the Government of the country is helping this type of
entrepreneurship to excel in the market. With the advent of the travel and tourism industry,
several small and medium sized businesses have a popped up in the same and these
companies happened to be responsible for providing the nearby localities with several
benefits (Kusmintarti et al. 2016). The tourism companies are responsible for the increased
employment to an extensive amount and there has been an increase in employment by 30%
due to this type of companies. These companies are having huge revenues due to the peak
seasons in the country (Love et al. 2016). However, this kind of business is seasonal in the
United Kingdom and therefore many people, especially who have a contractual job face
problems with money, and therefore many people of the nearby areas do not like to work in
these types of companies.
Whereas, companies related to the eCommerce retail trade has been growing recently and the
companies have been able to recruit many members and influence positively in the market of
United Kingdom. The Retail Industry of the United Kingdom has been growing since years
and this type of companies have been able to make significant use of the different strategies
and the technologies used by the other companies to excel in the market (Morris et al. 2016).
Some of the major disadvantages of this type of companies are that it faces a lot of
competition from the other retail organisations like Tesco, Marks and Spencer and Aldi. The
companies have not been able to make a lot of profit in the modern market but have been able
to increase its operations in the international market, which helps it to flourish and continue
with its growth (Pauwels et al. 2016).
The hospitality industry has helped to provide the people with high salary jobs and the people
have been able to meet their personal demands. These companies have influenced heavily on
the standard of living of the people and have helped to eradicate several social problems
faced by nearby societies. However, due to the lack of proper growth in the industry, the
companies related to the eCommerce retail trade has not been able to impact heavily on the
market of the United Kingdom and therefore, this industry cannot be considered to be one of
the best options in the midst of the United Kingdom.
8

The Czech Republic and Slovakia
The small and medium sized business has been blooming in several countries, however
contrasting the impact of the business on the Czech Republic and Slovakia is very hard to
analyse because there is a lack of proper data on the same (Pfeifer et al. 2016). After
analysing several journals, it has been found out that the market of the Czech Republic has
been able to grow with the help of the neighbouring countries and the small and medium-
sized businesses have been able to impact positively in the market of the country. However,
in countries like Slovakia, all businesses are generally small sized and do not earn much
revenue to help the people in the nearby areas, and they do not have that extensive power to
influence the economy (Abby 2015). According to a survey, there are roughly more than 1.1
million active enterprises in the Czech Republic; however, most of them belong to the group
of the SMEs. These companies have an average employee count of 250 and their employee
most 1.78 million people in the country. There are also several micro firms in the country
and they invest to almost 27% of the country's GDP (Dawson and Henley 2015).
Conclusion
This piece of the examination have surveyed and translated the data of how smaller scale and
independent companies affect the economy and has helped to comprehend the significance of
this kind of organizations in the social economy.
9

LO3: Essay
Successful entrepreneurs always have different skills and have a different entrepreneur
mindset that helps that person in becoming one of the greatest entrepreneurs. It is important
for every entrepreneur to have a skill and characterises and differentiates them from other
people and they must have the capability of running a company in the most efficient and
effective manner so that the losses can be stopped and profit can be increased (DeNisi 2015).
There are several successful entrepreneurs in the world, and some of them are Bill Gates,
Jack Coven and Jeff Bezos and they have been very much successful in their business as they
had a proper vision, aim and objective (Eggers and Song 2015). There is always a difference
between an entrepreneur and a manager and some of the differences include that an
entrepreneur has a proper vision at all times, whereas a manager works for a salary and they
do not want to bear any risks. Entrepreneurs are the people who always want to take
financial and other risks so that they can convert the idea into the business process, which the
managers cannot do (Hayter 2015). Entrepreneurs always act as leaders and there are very
much focused on expanding the business ideas and on starting different procedures, analysing
the risks beforehand. However, a manager does not have the ability to act like a leader but
always focuses on the smooth functioning of the business rather than taking risks and
expanding the business ideas (Kirugi 2015).
An entrepreneur is always a good motivator and these people provide the subordinates with
different factors of motivation so that their ideas can be carried on in the market smoothly.
The key motivation of an entrepreneur is the achievement that the person achieves. Managers
do not have any achievement and the motivation of these people always comes from the
position itself (Mazzucato 2015). Another difference is that the reward or the earning of
entrepreneurs is always based on the entrepreneurship and all efforts are associated with the
company. The managers' remuneration is the salary that the person is paid from the company
and this person withdraws that amount of money for himself or herself. Finally, an
entrepreneur is always casual and informal about the approaches, the person is a risk taker,
and therefore his work is to take calculated risks and drive the company further (Roach and
Sauermann 2015). Whereas, for the case of a manager, the person is very much formal at all
times and the individual acts as a part of the company and this person is always avoiding
10

risks at all times. The major aspect of this person is to maintain the decorum inside the
organisation and the person can never afford risks.
Skills of an entrepreneur are important, as this comprises of the abilities that the person
provide to the company to make it successful in the competitive market. It has to be
understood that an entrepreneur is always a culmination of ideas and concepts and can be
defined as a person who is the brainchild of different perceptions and conceptions leading to
the risks for the company (Singh 2015). Therefore, one of the major necessities of an
entrepreneur is that the person cannot develop the ideas and perceptions and keep that to
oneself, but will have to communicate with stakeholders and the people of the community so
that it becomes easy for the person to describe its outcomes to the public and help in the
operations of the company (Tinkler et al. 2015). Therefore, it can be said that every
entrepreneur has to effectively communicate and communication can only help the person to
publicise their ideas and concepts so that other people believe in them. It is evident that
teamwork always helps in decreasing the work time and increases the efficiency of every task
that is done inside the organisation (Landabaso 2014).
Therefore, it is important for an entrepreneur to have a very competent and efficient team so
that they can develop and shape the ideas in a realistic manner. It is very important to
employ a team in the working process so that the person can look into the matter properly and
can provide them with ideas so that they can mix and gel with other team members ( Putta
2014). The manager of an organisation is a person who looks after the operations of the
company and sees whether every activity is going according to the plan and if the employees
are working to the fullest (Ward and Rhodes 2014). Therefore, it is important for the
entrepreneurs to ensure the fact and concepts to the managers so that these people can make
the facts realistic and bring it into existence. Therefore, it can be said that it is important for
the entrepreneur to have a very efficient management team who can work in the process and
get the operations of the company error-free (Antolín-López et al. 2015).
The situations in large multinational companies and small and medium-sized companies are
always different and therefore the managers and the entrepreneurs have to act according to
such situations. In small and medium-sized business, the business can face losses sometimes
and therefore, it is important for the entrepreneur to motivate the employees so that he can
increase the productivity of these people (Arregle et al. 2015). This person can cheer up the
employee teams and make them confident of the roles and responsibilities. It is the key skill
11

of an entrepreneur that separates them from a manager. Another factor is that, whenever the
person is taking decisions they do it very confidently and they do not fear risk at all. They
also do not hesitate to think unconventionally and they use this thinking to enhance the
products and services as well as include ideas for the benefit of the company.
It is evident that the success of an entrepreneur is very dependent on the personality of the
person that contributes to the exchange within the organisation. The names of the
entrepreneurs mentioned above are the ones who are responsible for the efficient
management of the organisation and they have some common forms of personality, which
they use to bring success to the organisation (Dey et al. 2018). Some of the entrepreneurs act
as improvers and the main aim of these people are to set an example to the subordinates.
These people act as the line of action so that the subordinates can use this idea and function
according to the proper principles and ethics maintained by the person. These people also
believe that business has to be carried out in the most proper and ethical way so that it can set
good examples to the customers and help other people to follow the same code of behaviour.
Big-5 Model focuses on developing psychological beliefs regarding personality, referring 5
traits regarding extraversion, openness, agreeableness, conscientiousness and neuroticism.
This model is effective to develop the personality to ensure the traits regarding establishing
developed theoretical impacts on individual (Anglim and Grant, 2016). As being student in
DGHE, the model is helpful to focus on establishing entrepreneurial spirit by utilising Big-5
model on it. It needs to develop positive and negative establishment to affect the correlation
that affects the individual with the model. As per Croft-Simon’s entrepreneurial personality,
it can be effective to apply big-5 model of personality traits. Entrepreneurial personality traits
are needed to establish the pro-activity regarding personality development to establish the
cognition and personality development. It influences the cognition regarding practical
implication that is important to control the combination and practical establishments to
process the decision-making. According to Wall et al. (2019), it is effective to focus on
enriching the personality traits regarding understating the theoretical aspects and practical
implication in the personality and theoretical implications. As per the entrepreneurial
personality, big-5 model is effective to establish` the effective activities and achievements of
Croft-Simon. It can be said that the model is used to achieve and establish the correlations in
personality development.
Maslow’s Pyramid is a motivational theory that establishes the psychology that comprises
five-tier model within the pyramid (Geetha and Deepa, 2019). It establishes to depict the
12