Entrepreneurship and Small Business Management

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Discuss the importance of small business management.
Discuss skills for successful entrepreneurs.

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Entrepreneurship is basically associated with a process of thinking and developing some new ideas in order to grab some foresighted opportunity in form a new business organisation with main aim of earning profit and creating value for society. On the other hand, an Entrepreneur is a person or individual who is responsible for developing some new ides and plays crucial role in effective execution and implementation of that idea in a unique way through bearing all the associated risk and enjoys the maximum share of earned profit (Brush and et. al., 2019). This report basically based on the Entrepreneurship and Small Business Management and includes interpretation of relevant statistical data to evaluate the impact of micro and small business on economy and also includes importance of business start-ups in the growth of social economy. Further, various traits, skills and characteristics of successful entrepreneurs is also their together with influence lead by background and experience in hindering or fostering entrepreneurship.

Data and statistics showing impact of micro and small business on the economy

The micro and small business organisation are playing a relevant and important role in growth and development of economy of UK through creating fair and better job opportunity (Dana, 2018). Beside this, small and micro business also facilitates improvement in productivity which lead to enhancement in GDP and economic growth rate of a nation. Following statistical data and graphs are reflecting positive impact and growth of small and micro enterprises in UK.

On the basis of above line graph it can be interpreted that the number of small and micro enterprises are increased by around 2.4 million that is +69% from 2000. it has been also seen that the number of small employing business has been grew up by 27% where as medium sized employees have been grown by 33%. On contrary the large business organisation are increased only by 7% since 2000 (Essential Facts You Should Know about SMEs in the UK, 2019). Thus, it can be evaluated that small and micro enterprises are having a maximum contribution in growth rate and development of economy of UK.Get Assignment Examples.Talk to our Experts!

The above bar graph is reflecting that small and medium sized organisation accounts for more than three fifth of employment and near by half of turnover of total private sector of UK. In 2019, total employment provided by small and medium enterprises is around 16.6 million i.e. 60% of total. Apart from this, 48% of employment, 33% of turnover together with 99.3% business are hold by small businesses in UK. Beside this, 12% employment, 14% turnover and 0.6% business is hold by Medium enterprise (Business population estimates for the UK and the regions, 2019). On contrary large business accounts only for 0.1% of business of private sector of UK with 40% employment and 53% turnover. Further, report of office of National Statistics has showed that 2.6 million organisation of private sector are registered for VAT or PAYE out of which 13% are sole proprietorship and 51% are partnership. Therefore, it can be evaluated that small and medium enterprises are providing a larger number of job opportunity and have significant share in total turnover and GDP of UK (Bryson and Daniels, 2015).

Importance of small business and start-ups in growth of social economy

The important and crucial role played by business start-ups and small enterprises in growth and development of social economy is explained below:

Better job opportunity- The biggest advantage lead by small business is providing better job opportunity to financial weaker section of economy as a large amount of finance is not needed for establishment of a small business (Dominik and Banerji, 2019). Thus, small business brings equality and create better chances of job for local people of society therefore lead to social economic growth.

Contribution in innovation- The small business and start-ups provides fair chances and opportunity to weaker section of society to show their creativity and innovation with requirement of small monetary funds. Thus, lead to better ways and enhancement in creativity that lead to better social economic growth of a nation.

Enhanced productivity- Another benefit of small business and start-ups is that it lead to enhancement in overall productivity and GDP of economy thorough offering more creativity and larger number of business venture (Fayolle, Verzat and Wapshott, 2016). Small business and start-up therefore lead to better standard of living through providing more products and services to local people at an affordable price thus, contributes in social economic growth.

Beside this, small business also lead to various positive impacts at different level of economy which is provided below:

Local level- At local level small business yield better job opportunity for localities and solve the problem of unemployment for local people.

Regional level- Small business yield better standard of living through offering better quality product at affordable price to domestic customers at regional level.

National level- At national level small business lead to enhancement in GDP and economic growth through better ways of production and creativity level which lead to increase in overall productivity (Ferreira, Fernandes and Kraus, 2019).

International level- As small business improve GDP and economic growth rate of a nation therefore create better image of economy at international level which attract more foreign direct investment and lead to better flow of money that facilitates better growth opportunity at global level.

Thus, it can be evaluted that Small businesses are important in UK as they provide better opportunities for entrepreneurs and also create an meaningful jobs that yield greater job satisfaction as compared with larger, traditional companies. The various SMEs like ThirdWay group, Brightstar Financial, Clarasys, etc. has foster local economies and keeping money in its domestic country and also supporting better neighbourhoods and communities with internation economies and nations for improvement in overall economy of UK.

Characteristics, traits and skills of successful entrepreneurs

There are various traits, skills and characteristics of an successful entrepreneurs that makes them superior and better than other individuals and mangers. A description of these traits, skills and characteristics of successful entrepreneurs are provided below in context of two inspiring entrepreneurs of UK.

CHAY BLYTH

He is a Scottish yachtsman and rower who founded the challenge business in order to organise British steel challenge. The Chay Blyth is not a born entrepreneur and has joined British Army Parachute Regiment at the age of 18 but his life experience and sailing experience enhanced his creativity and lead to development of various skills and traits of a good entrepreneur. The main traits, characteristic and skills of chay blyth are as follows:

Traits

Innovation- It is one of the most important trait of an entrepreneur as it make them able to come up with new and unique idea. Chay blyth is having this trait of innovation thus, he always come up with some exclusive and interesting ides to attract lager number of customers which makes him successful (Galloway, Kapasi and Sang, 2015). Managers are not much innovative and just perform their duties with traditional approach.
Feedback taking approach- Chay blyth is also having a trait of taking regular feedback and views from its customers and employees that facilitates regular and continuous improvement in its business operations. Mangers does not emphasis much on taking feedback or reviews from its customers and employees.

Characteristics

Leadership- Chay blyth is a having the characteristics of being a good leader which makes him able to properly guide and motivate his employees for better performance and also facilities better collaboration thus makes him a successful entrepreneur (Gartner, 2019). On contrary mangers lack this features and believes in ordering his employees instead of guiding them.
Risk taking- Chay blyth believes in taking all possible risk in order to grab a opportunity for better results which makes him better than mangers who are basically conservative and likes to avoid risk. Order assignment help from our experts!

Skills

Communication- Chay blyth is having an effective communication skills which makes his conversation more interesting and influencing thus, it become easy for him to attract and influence investors, customers and employees for better results. Managers are not so good communicator thus, face difficulty in motivating and influencing its employees (Julien, 2018).
Strong motivator- Chay blyth is a kind of person that likes to motivate and appreciate the efforts made by his employees and fellow team members through various types of perks and incentives which make them more loyal and committed thus, facilitates a successful business venture. Mangers dose not believes in sharing credit and appreciating its employees thus, their employees feel demotivated which hampers their performance.

Guy Riese

He is co founder and CEO at Up Learn and provides effective education and pushing the frontiers for learning. Guy Riese is a born entrepreneur as from his childhood he posses many skills and traits that make him a successful business man and different and superior than other individuals. The main traits, skills and characteristic of Guy Riese are as follows:

Trait

Decisiveness- This trait of Guy Riese makes him capable to properly evaluate and understand the prevailing situation and issues to have a better decision making to resolve that issues in more effective manner. Managers are not having this trait of Decisiveness thus, their decisions are not so effective as compared to a successful entrepreneur (Kuratko and Morris, 2018).
Experimental- Guy Riese always emphasis on experimenting and creating and developing new things that are beneficial and helpful for customers and create value for society. Mangers are not much experimental and likes to follow traditional lines of work.

Characteristics

Problem solving- Guy Riese is having a crucial characteristics of properly analysing the reasons and main cause of each problem and makes appropriate efforts to resolve and overcome these issues well on time which makes him successful (McMullen, 2019)(Pages, 2019). Managers are not having much capacity to solve and overcome all issues which lead to their failure.
Confidence- Guy Riese is a self confident kind of personality which makes him able to believe on himself and makes his decisions and actions more firm that facilitates success. Mangers are not so confident for their work thus, their decisions and actions are not so firm to achieve success.

Skills

Focused- Guy Riese always remain focused toward achievement of his goal and objective and not get diverted from his work which improve his efficiency and facilitats success for him. Managers are not much focused and easily get distracted from their work thus, their gaols are not achieved on time.
Mindfulness- Guy Riese is a person with sharp mind and also have a bold nature which makes him able to face and counter all problems and issues quit easily therefore, facilitates success and growth for him (Pelz, 2019). Managers are not have much sharp mind thus, feel exhausted and unable to counter a complex situation. Struggling with your dissertation, get dissertation writing services from our experts!

Entrepreneurial motivation and mindset

Personality of an individuals depends on its behaviour, psychology and attitude that forms a base for their decision and mindset (Turner and Gianiodis, 2018). Use of OCEAN personality models is made to determine the mind set and motivation level of Chay blyth and Guy riese which is described as below:

Openness- The persons having this personality trait are more curious about learning new things and have high creativity and innovation traits and characteristics. Chay blyth is having high Openness trait as he is very creativity and innovative in its work. This personality trait is also seen in Guy riese as he is quite experimental in his work.

Conscientiousness- An entrepreneur having this trait is more thoughtful and likely to be goal oriented and well organised person (Sassmannshausen and Volkmann, 2018). Guy riese shows high conscientious trait as he is more focused towards his goal and objective also motivates his employees for the same.

Extraversion- The person with this personality trait are characterised as more talkative and out spoken together with a social and interactive personality. Chay blyth is high on Extraversion trait as he is a very effective communicator and have the skills of motivating and influencing other with his social and intercalative personality.

Agreeableness- It is one of the best personality trait for an entrepreneur that makes them more trustworthy, affectionate and kind which is necessary to motivate employees and lead to creation of positive and healthy workplace. Both Chay blyth and Guy riese are having personality trait of Agreeableness.

Neuroticism- This personality trait is quite negative and reflects a emotionally unstable and depressed personality trait that is not suitable for any entrepreneur (Brush and et. al., 2019)(Bryson and Daniels, 2015). Both Chay blyth and Guy riese show low level of Neuroticism trait as they not depressed or emotionally unstable kind of person.

Examining how background and experiences can hinder or foster entrepreneurship

Entrepreneurship is a sole and sometimes mix efforts of people who aims at developing their own business and sustaining in marketplace. Individuals develops an ideas and work on it for building and scaling a successful business. These ideas which they develop are mixture of their backgrounds and past experiences they had in their professional and personal lives. Therefore, it is seen that backgrounds and experiences of entrepreneurs can hinder or foster their businesses.

CHAY BLYTH

Background- Chay Blyth was born in Hawick and youngest child for his parents out of other six elder siblings. Chay Blyth belongs to a blue collar family and use to live in a council house with his parents (Dana, 2018). He has good education as compared to other children's around him as they end up in mills working and earning their livelihood.

Experience- Chay Blyth had a really good swimming skills and experience by the age of 12 years. He soon proved to be a strong competitor for others for which he has to go through several trainings and hard work.

From the discussion above about Chay Blyth it is clear that he has experience of swimming and very much comfortable with water which made him courageous enough and motivated to sail in wrong direction over the world (Dominik and Banerji, 2019). This signifies that experiences of Chay Blyth played a very important role in his success. His experiences and string family background foster his ideas and helped him in developing business and moving towards success and earning huge profits. The life experience of Chay Blyth and his working with British Army Parachute Regiment at the age of 18 has yield effective sailing experience that has enhanced his creativity and lead to development of various skills and traits that makes him a good and successful entrepreneur.

GUY RIESE

Background- Guy Riese is a tech savvy, he was very keen to learn about new things and development taking placed in science. Also, his life use to just revolve around technology and entrepreneurship. Studying the marketplace and about the new developments taking place in science.

Experience- Guy Riese was innovative and creative, also vary passionate about technical world, which encouraged him to start his first business at the age of 13. He entered into business world in early time of his teenage and gained a lot of experience and knowledge which made him a successful entrepreneur just by the age of 25 and still moving towards more success (Fayolle, Verzat and Wapshott, 2016).

The discussion above has clearly states that experience of Guy Riese and his love for technology and business entrepreneurship made him and his start-up a success. His increasing interest in technology and innovative skills assisted him in developing a new idea and made him and his business a success. Thus, the childhood passion and high level of knowledge and creativity has made Guy Riese a successful entrepreneur.

Conclusion

The above report concludes that entrepreneurship has huge impacts on the economy. Different entrepreneurial ventures has huge impacts on the economy, contribute their part in improving living standards of individuals and creates flow of money. Some of these factors enhance the economy's position and gets higher position amongst the world. The mindset of entrepreneurs, unique characteristics and traits also determines the success of businesses irrespective of their size. Along with it, the backgrounds and experience of entrepreneurs also hinder or foster their ideas and methods of conducting business activities, attaining success and be more productive.

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