Entrepreneurial Mindset and Environmental Factors in Business

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Entrepreneurship and Small Business Management

Table of Contents
Introduction......................................................................................................................................3
Task 2: Report..................................................................................................................................4
Impact of small and micro businesses in the UK........................................................................4
Impact on the national economy..................................................................................................4
Impact on the regional economy..................................................................................................5
Importance of SME’s...................................................................................................................6
Hospitality and E-commerce retail..............................................................................................7
Slovakia vs the Czech Republic..................................................................................................8
Conclusion...................................................................................................................................8
Task 3: Essay...................................................................................................................................9
Conclusion.....................................................................................................................................14
Reference List:...............................................................................................................................15

Introduction
The introduction of small and medium-sized businesses has been responsible for the extent of
organisational transformation around the world and has swayed the level of GDP as well as the
standard of living among the people of various nations around the globe. Entrepreneurship is
concerned with dealing with the issues of the society as well as heeding the business operations
to benefit from the markets and the trade (Antolín-López et al. 2015). Entrepreneurship has
become one of the major ideas and inclinations among young people and has resulted in the
development of several small and medium-sized businesses in different contemporary markets.
This study will be focusing on the impact of the different levels of business and entrepreneurial
ventures in different areas around the world

Task 2: Report
Impact of small and micro businesses in the UK
Small and medium-sized businesses have been growing in the market of the United Kingdom
and it has been primal to the overall economy of the country. It is not easy to analyse the impact
of small and micro businesses within the United Kingdom, however, information suggests that
small and micro businesses in the country have been the most important type of businesses
affecting the utmost of the social economy. These kinds of businesses are increasing day by day
and have been a boon to the market of the United Kingdom, contributing significantly to the
GDP of the country (Arregle et al. 2015). The development of these businesses has increased
employment and even the Government of the country is trying to develop these organisations so
that it provides ample opportunities to the people around as well as excel the market condition of
the country. The significant emerging of these businesses has been acting as the backbone of the
economy as well as is allowing the people to benefit from the operations, helping in the wide-
ranging transactions around the world, increasing the flow of international currency, increased
the development of the nearby areas (Pfeifer et al. 2016). It is providing the people with job
opportunities, helping to increase the maturity of diverse neighbourhoods in the country.
Impact on the national economy
The extensive market of the United Kingdom has been facing increased transmutations in the
modern day world due to the advent of globalisation and according to the surveys, it has been
found that more than 11000 SME’s have risen in the United Kingdom within the last two years.
These type of organisations have had resulted and increased sales by 11% which has also
increased the GDP by 23% in the country (Dey et al. 2018). The micro and small businesses
have contributed to more than 196 billion Euros to the development of the country and some of
the organisations residing in the posh cities of the United Kingdom is allowed greater business
opportunities around the world and has increased the flow of international currencies
extensively. Most of the companies belong to the hospitality and retail industries however; the
advent of the hospitality businesses in the country has increased the value of the market and has
resulted in 15% of the increased GDP of the country (Rahnama and Lotfi 2016). According to

research, it has been found out that the small and medium-sized businesses are likely to offer the
United Kingdom with €200,000 within the year 2020 (Leutner et al. 2014).
Industries are growing every day in the market of the United Kingdom and according to several
journals; almost 76% of the SME’s will become the major contributors to the economy of the
country. It is also likely that the number of organisations will rise to 534035 companies within
2020 and they are likely to increase employment among the people extensively, which is going
to affect the growth positively and enhance administrative and professional services (Muller et
al. 2015). It is also likely that different kind of organisations will be arriving in the upcoming
five years, which would include educational firms, retail companies, health companies, and
accountancy firms. The growth of these companies has become extensive, and studies suggest
that there were 5.7 billion private sector industries in the United Kingdom in 2015, which have
risen to be 9.2 billion companies in 2019 (Aikens and Peterson 2017). There has been an increase
of 3.1 million employments after 2012 and 93% of the organisations belong to the private sector.
Impact on the regional economy
Greater London and Manchester has been the best markets of the United Kingdom and is the
most valued areas for growing industries recently. SME’s have increased by 15% in Greater
London and 11.5% in Manchester and it has been seen that London has been a great place for
this kind of organisation to prosper, as it is the busiest areas around the United Kingdom
(Amelung et al. 2017). Most of the companies are trying to build themselves up in London and
Manchester as these markets are renowned for good transportation and extensive population, and
it is likely that organisations residing in these cities will help to increase the development by 196
billion Euros within the end of this year (Wall et al. 2019). The regional and the local
communities of the United Kingdom is very much dependent on SME’s as these companies have
been able to increase the revenue of the people as well as annihilate social issues faced by a large
concentration of people dwelling in the cities like Manchester and Greater London.
According to several journals, it was seen that, for every 10000 people in London there are
nearby 1519 businesses, while in Manchester there are 657 businesses for 10000 residents
(Fsb.org.uk 2018). The businesses have been blooming in the London area and in some parts of
the southeastern zone of the country, and these companies have been allowing several options for

people as well as are helping in the development of the local areas as well. More than 50% of the
employment in London is provided by these organisations and due to the increase in business
operations among international countries, there has been a 40% increase in imports and exports
as well. The micro businesses have been able to contribute to 55% in London itself and 23% in
Manchester (Bower 2017).
Importance of SME’s
The small and medium-sized businesses have contributed collectively to the welfare and
development of the nearby surroundings as well as the country and have helped the community
to grow extensively (Cardon et al. 2017). This kind of processes has positive and adverse effects
on the society, resulting in philanthropic outcomes increasing the living conditions of the people
and livelihood of the society.
Generating employment
Small and medium-sized businesses have been able to develop employment opportunities not
only for the people nearby but also for the people all around the country helping to develop the
social economy. This type of organisation has been able to solve several social problems like
social unrest and has helped in bringing up the standard of living of the people. Almost 45% of
the increase in employment has been done by small and medium-sized businesses contributing
extensively to the GDP of the country (Landabaso 2014).
Assistance to less privileged
The companies have been able to help the people who are less privileged, and have been able to
positively impact on different societies, deal with political and social problems and have
increased employment opportunities for the people (Carsrud et al. 2017). It has also been able to
take care of problems like hygiene and education and has focused on mitigating the problems
faced by the people by spreading awareness among them. It has also provided many immigrants
with job opportunities focusing on increased awareness on environment, hygiene, and proper
education (Hong et al. 2017).
Legalising business affairs

The organisations have been able to develop the economical conditions and consecutively, have
resulted in the decrease of illegal activities. Black market trading has decreased due to increased
employment among people and the organisations have focused on ensuring the operations to the
customers without violating the prevailing laws (Putta 2014). It has also been able to increase the
chances of transparent business and symbiotic relationship inside the market.
Environmental sustainability
These organisations operate in a very sustainable manner reducing harmful activities and using
different environment-friendly activities like green technology and energy, taking part in
recycling and reusing processes, reducing the wastage and making the activities environment-
friendly by reducing the level of pollution (Lindh 2017). The companies also develop the
products and services in such a way that ecological balance is properly maintained and wastage
are at its minimum.
Hospitality and E-commerce retail
The hospitality sector has developed recently and has provided with several opportunities for
which the government have invested in these organisations. The hospitality industry has been
responsible for or developing the local areas and has increased employment by 30% (Mauer et al.
2017). These companies have huge revenues especially during the peak seasons; however, the
business of these organisations is seasonal, resulting in contractual jobs, increasing problems
among people with money and work, which is lost in several seasons around the year. However,
the E-Commerce retail industry is also growing recently and has influenced positively on the
market of the United Kingdom (Ward and Rhodes 2014). These companies use different
strategies and technologies to excel in the market however; it faces a lot of competition from the
top retail companies like Marks and Spencer, Tesco and Aldi. This is why these organisations are
not able to make enough profit. The hospitality industry provides the people with a good salary,
which helps the people to meet their personal demands and eradicate several social problems of
the nearby areas (Abby 2015). The impact of the hospitality industry on the United Kingdom has
been extensive whereas the E-Commerce retail trade has not been able to do so because of huge
competition from the large retail companies, and therefore, they cannot provide the people with a

good salary, resulting in inadequate growth of the industry in the United Kingdom (Tietz and
Parkar 2017).
Slovakia vs the Czech Republic
The market of the Czech Republic and Slovakia has been contrasting and small and medium-
sized businesses have been able to bloom in several countries like the Czech Republic but not in
Slovakia (Crowther and Seifi 2018). However, it is very hard to analyse the actual condition of
the market in these two countries due to the lack of proper information. After analysing different
sources of information, out it has been found out that the small and medium-sized businesses in
the Czech Republic has been growing recently and has been able to impact positively in the
country. It has also been able to increase employment opportunities and has increased the flow of
international currencies in the country (Dawson and Henley 2015). The market of Slovakia has
not been affected much by the advent of small and medium-sized businesses and it has not
resulted in the increased revenue or growth in the societies. More than 1.1 million enterprises
have popped up in the Czech Republic and almost an average count of 250 employees has been
seen among these enterprises. 1.8 million people have been employed since the last 5 years, and
micro firms in the country have contributed to 27% of the country's GDP (DeNisi 2015).
Conclusion
The world is going through diverse transformations in the contemporary world. It has been learnt
that globalisation has become an influential factor because of which the world has changed and
there have been huge transmutations in the way distinctive companies amputate in the market.
This part of the study has focused on understanding the impact of SME’s on the different places
of the world and the way in which it has been able to affect the growth.

Task 3: Essay
This part of the study will focus on demonstrating and identifying the entrepreneurial mindset
and environmental factors that affect and encourage entrepreneurship within an environment.
Every successful entrepreneur has a different set of skills as well as they have a different mindset
that helps them to use their skills to make the changes (Dees 2017). Successful entrepreneurs like
Bill Gates, Jeff Bezos and Jack Coven has different skills and characteristics that differentiate
them from the normal people and it is evident that they always have a particular objective, aim
and vision to carry on their activities.
The skills and characteristics of a manager and entrepreneur are always different and some of
these depend upon characteristics like the vision of the people, the motives, and the level of risk
taking. Managers of the companies are salaried employees who do not try to take any risk, rather
deal with them, and use the ideas of the leaders in a realistic manner (Eggers and Song 2015).
Leaders and the entrepreneurs always take risks so that they can convert their idea into the actual
process of the business, however, the managers take over these ideas and think in a realistic
manner so that the operations are flawless and the risks can be eradicated. The entrepreneurs
focus on expanding business ideas by analysing the risks beforehand and the managers always
like to continue a smooth functioning process eradicating the risks and expanding the business
ideas (Hayter 2015).
Entrepreneurs and leaders are always good motivators for people and they do that to make the
people work efficiently and carry on the operation smoothly. The achievement of an entrepreneur
is what the person achieves from the efficiency of the people. Managers earn a salary for their
work and they are not much focused on motivating the people but have an authoritative nature
trying to gather as much as they can from the employees (Kirugi 2015). The manager is
remunerated and the person can always withdraw the amount for himself or herself. An
entrepreneur is much more concerned with taking informal and casual approaches and the person
is a risk taker so that the ideas can actually be converted into the operations of the business.
Managers do not take any risks whereas the leaders always try to take calculated risks so that
they can introduce a change to drive the company and deal with the problems of the market

(Julien 2018). Managers act very much formerly avoiding the risks at all times, so that the person
can focus on the increased profitability of the company while maintaining the decorum inside the
organisation (Mazzucato 2015).
The abilities of an entrepreneurial make a person successful in the market and these people
generally have a culmination of concepts, which can be defined as a brainchild leading to the
risks of the company. This kind of people always creates ideas and perceptions, which they
develop over time, and they do not keep these to themselves, describing and communicating
these ideas to the stakeholders as well as the community (Roach and Sauermann 2015). This is
done so that the ideas can be converted to the operations, and the communication can help to
publicize the concepts so that people believe in them. Entrepreneurs have to be competent in
their work and will have to maintain an efficient team so that those ideas can be converted in a
realistic manner, which can also formulate the person to look into the matter properly and mix
and gel with other team members (Masrani et al. 2018). On the contrary, a manager focuses on
every activity of the organisation and sees whether they are being done according to the plan and
with efficiency (Singh 2015).
The managers and entrepreneurs have to work accordingly depending upon the situations of
different organisations. In the cases of small and medium-sized businesses, the chance of losses
are quite high and therefore, it is important an entrepreneur for a manager to motivate the
employees and focus on increasing the productivity among these people (Tinkler et al. 2015). In
the case of a multinational company, they have to focus more on maintaining the operations and
dealing with the competition in the market. Entrepreneurs can motivate and encourage the
employees whereas the managers focus on getting the most out of the employees. They can also
make the employees confident about the roles and responsibilities and they do not fear risk at all
(Anglim and Grant 2016). They also do not hesitate to think unconventionally and enhance the
use of the product and services to benefit the company.
Entrepreneurs are successful because of several personalities and the way in which these people
associate themselves within an organisation. Some of the entrepreneurs like the ones mentioned
above are very much concerned with the effective management of the organisation so that they
can bring success with the use of different forms of personality into the organisation (Morris et
al. 2018). Sometimes the entrepreneurs have a personality of improvers, which helps them to

focus on the primary aim of the company and to set the person as an example to the subordinates
(Bernstein et al. 2016). This is a way in which the entrepreneurs maintains the line of action with
the people and the subordinates, which helps the person to come up with the idea and make the
organisational function according to the codes and proper principles maintained by the
entrepreneur. The entrepreneurs also believes that every action inside the organisation has to be
carried out ethically so that the individual can set good examples to the customers, which will
also allow the employees to follow the same code of behaviour (Bosma et al. 2016). Several
entrepreneurs use the Big Five Model, which helps to focus on different psychological beliefs of
personality focusing more on five traits like neuroticism, conceitedness, agreeableness, openness,
and extraversion. This model is used so that the personality of the person can be developed and
theoretical impression can be grown among the individual. I am a student of DGHE, and this
model can help to focus on establishing entrepreneurial spirit by using the model which can also
help to develop negative and positive establishment affecting the correlation to the individual
using the model.
Croft-Simon’s entrepreneurial personality can also be applied along with the Big Five Model of
personality traits. To establish the pro-activity within the organisation, it is important to utilise
entrepreneur personal traits, which can help to establish the level of personal development and
cognition (Byrne et al. 2016). It is important to control the combination with the help of
cognition, which can establish practical establishments allowing benefiting the process of
decision-making. It is also effective to enrich the personality traits by understanding the practical
implication and theoretical aspects based on the personality and theoretical implications; and
with the help of this entrepreneur personality, effective activities can be established and
achievements can be recognised (Colombo et al. 2016). Another motivational theory that can be
used is the Maslow's pyramid, which helps to establish psychological understanding comprising
of the five-tier model within the pyramid. It states that the level of needs can be divided
according to the hierarchy levels within a pyramid and these are done according to the
psychological needs and safety needs as basic needs whereas the needs for self-actualization is
the least important (Galloway et al. 2019). Needs for belongingness and love, and esteem needs
act as psychological needs, which range in the mid-order. This model helps to maintain the
motivational level and ensure the satisfaction of every individual inside the organisation.

Use of Maslow's hierarchy of needs can satisfy the correlation between entrepreneurial success
and entrepreneurial characters and the use of this is important to ensure the effectiveness in the
characteristics and making the entrepreneurs successful, creating a balanced environment and
increased success rate (Davis et al. 2016). It also establishes a correlation between the success
criteria and the characteristics of entrepreneurs, which can help to analyse the success rate
measurement and to interpret the activities. It also helps to focus on the success criteria so that an
interrelationship can be developed to establish an opportunity to the entrepreneurs; and utilising
this model, can help to develop interpersonal personality, helping to establish entrepreneur
success and measurement (Holmberg-Wright and Hribar 2016). Several factors determine the
characteristics and skills of an entrepreneur and this is associated with the financial,
demographic, and educational factors. Education is significant as it helps the entrepreneur to
consider the basic amenities so that they can develop their attributes and increase entrepreneurial
activity focusing on organisational success. Demographic factors like gender, age, and standard
of living can hinder and foster the success measurement and the level of success and it can
establish a positive and effective entrepreneurial activity (Ibrahim and Mas’ud 2016).
Several entrepreneurs try to increase their followers and they act as superstars so that they can
focus on increasing their fan following so that they can focus on the development of the
organisation (Geetha and Deepa 2019). They are very much competitive and have a charisma
and charm that helps to lead other people increasing their followers and act as an implementer of
this form of personality. This kind of behaviour is associated with the employees and the
organisation and their operations are such that they focus on increased competitive advantage
and brand image of the organisation. Another form of entrepreneurs is there who act as advisors
for the companies (Kusmintarti et al. 2016). They believe that the employees and the
stakeholders of the company are the major elements of an organisation and they do not like to
leave the stones unturned. They try to operate in such a way that the consumers are always
satisfied and they try to help them as much as possible so that they can attract them and retain
them as well (Love et al. 2016). There is a kind of entrepreneur acting as the fireball of the
companies and they comprise of huge levels of power to work, motivation, and energy levels.
They try to take challenges often and deal with the problems in an efficient manner using the
personality that can incorporate a philosophy of optimism (Ramachandran 2016).