Entrepreneurship and Small Business Management Function

LO1

P3 Assess relevant data and statistics to illustrate

Micro Business

There is very little capital present in this business type, and they have a very little employee base for themselves. They do not receive any loan from the banks or any other financial institution which help the organization to expand themselves in market.

Small Business

This business is handled by the entrepreneur themselves and are having limited products and services with a vision of innovating products which will give it a competitive edge in market. Small business has stores in an area so that they can provide their products and services in the entire market which makes them have a strong base for themselves (Urbano and Aparicio, 2016). The investment and strategies is minimum in practice in this business to start their business in market. Number of employees in this are 10 or 50 as per the requirement of the business but not more.

Medium Business

In this business the focus is on earning the maximum profit in market, and they have a potential to grow but due to lack in techniques and strategies they cannot grow further. This can include the family business and traditional methods they have been using from a long time. This business wants to entire new market and establish themselves in market so that they can have a better base for themselves. There is high competition in this market and there is a need to increase the productivity for themselves so that they can earn the maximum profit for themselves. Employees working in this business can be 50 to 100 employees. Employees are being paid more than small business and there is not too much pressure on any employee. Employment rates in the nation will increase which is a good sign for the nation and a good measure taken by the company. Get Assignment Examples.Talk to our Experts!

Large Business

There is a requirement of high investment of capital in this business and to increase the productivity there is employment of a lot of individuals as employees in this business. This business is like the role model to small and medium business as they have reached as market leaders (Nambisan, Siegel and Kenney, 2018). The focus is on the man power which is being used by this industry, and they innovate their products and services in order to reach their goals and objectives. There are unlimited number of employees in this business type. A lot of job opportunities are being provided to the people because they have a lot of employees working in the company. Employees in this business are being paid well and are having the right environment to work in so that the business can meet their objectives and aims. There are more than 8,000 large businesses in UK. Large businesses impact on the GDP of the nation the most and that will make the nation develop themselves better. The infrastructure and standards of the people in nation will increase and there will be a better lifestyle of people.

Employment and turnover

In United Kingdom micro and small business have promoted the growth of economy by employing 16,630 people and the annual turnover is about 2,168,005. Three fifth of employment is generated by small and micro business in country.

The above graph comprises how small, medium and large organizations impact employment of country and that would increase the GDP of the country. It is very important to improve the employment rates of the country which would help in development of the nation.

Growth

As of 2019 it is stated that micro and small businesses account to 52% of turnover in United Kingdom and 60% employment in country. There is growth of micro and small businesses to 703,000 and sole proprietary has increased by 733,000. There are more than 5 million businesses of small and micro businesses and there was up to 3.5 million as of 2000 (Bionic's guides to business essentials, 2020). From the above statement it can be concluded that there is a great impact of small and micro businesses in United Kingdom. Small and micro businesses are creating a lot of job opportunities on the people of the country and the GDP of the country is getting better. United Kingdom is getting out of unemployment situation and this business type are helping the country to get that done.

P4 Importance of small-business and business start-up in the growth of social economy

Social economy evaluates and examine social value, belief, ethic of society, employment rate and income of consumer's effect on purchasing power of consumers. Thus, social economy is a relationship between social behaviour and economies. Small-business and newly started business pace social economic as they increase employment rate, disposable income and living standard of people living in the society.

Employment generation: Small-business and newly started businesses contribute large towards employment generate with the society as they choose individual living near to their company. Large company move in new territory living less employment opportunities for people living in the society. Thus, small businesses and newly started enterprise plays an important role in generating large employment in UK (Chowdhury, Desai and Audretsch, 2018). Small scale enterprise has generated more than three fifth of employment in private sector.

Diversity: Due to flexibility and less capital requirement for establishment of small-business anyone can plan to start new business and generating self employment. Small-business are more diverse as compared to large corporation in form of culture, function and potential.

Economic development: Small-business and newly business helps in development of economy by generating employment opportunities, increasing income of people and enhancing their knowledge and skills to perform various activities. It also enhances living standard of the people by increasing their knowledge and disposable income.

Turnover: Small-business and start up business contribute in enhancement of turnover of the economy thus helps in generating revenue and economic development. Increase in turnover enhance GDP of that the country and promote more enterprise to grow and expand its business. Small-business and newly started business has contributed to half of the turnover of private sector in UK.

Competition: As small scale enterprise provide quality product at reasonable rate to customers it increases competition level in the economy which in turn help in social economic development. Increase in competition provide wide varieties of choice to customers to choose among and select the best available option.

Enhance knowledge and skills of people: Small-business and newly established company increase knowledge and skill of people for performance of its task (Ibidunni and et.al., 2017). They can effectively use various technology to produce product or for delivery of services.

LO2

P5 Traits and skills of successful entrepreneurs that differentiate from other business manager

Entrepreneur should possess ability to take risk pursue innovative idea, skill and knowledge to start a project whereas manager is an employee of company. Manager is responsible or effective management of people and resource for achievement of company goals. An entrepreneur should be passionate, possess strong will, ready to take risk, creativity and competitive in order to run its business function smoothly. Whereas manager should possess ability to influence employees, client and ability to take quick and accurate decision-making for achievement of company goals. Want to get Assignment help? Talk Our Expert Now!

Entrepreneur skills

Passion is most important characteristic that an entrepreneur need to possess for success and growth of business. An entrepreneur should be passionate and love work so that they can put more effort, stay motivated for functioning of organization (Malebana and Zindiye, 2017). Sir Charles Blyth is one such example of having passionate trait as he was the first person to sail non-stop around the world. He was also creative thinker and open-minded as he was able to recognize and develop challenges business that organize four of “World Toughest Yacht Races”. He also possesses competitive and innovative skills as he was able to develops unique business that different it's company with other competitors and helps it in gaining competitive advantages. Self starter is also one of the characteristic or skills of entrepreneur as such he was the first person to sail single-handed non-stop westward around the world. Sir Charles Blyth confidence and his courage to start business helps in growth and survival of business across various nation. Strong working skills and determination toward achievement of business goals helps Charles Blyth to become inspiring entrepreneur for others.

An entrepreneur should be competitive and innovative in order to differentiate its company from other competitor company. Hellen Bowey is one such example of competitive entrepreneur as she is CO- founder and CEO of care-tech company Alcove that provide smart tech and software that detect lack of movement . Thus, competitive and innovative skill of entrepreneur helps in gaining competitive advantages thus promote growth and survival of business. She was determined and passionate about her business as she wants to help disabled and elderly adults live independently. Open -minded and creative thinking of Hellen Bowey helps it in launching and developing business that provide services to disable and elderly adult. An entrepreneur should possess courage and ability to take risk as business involves both risk and rewards. Hellen Bowey know about various risk involved in running business but even after knowing about risk she planned to launch business and running its operation across worldwide. Strong work ethic and knowledge skill related to work helps Hellen Bowey to become one of the successful entrepreneur in the industry.

So, it can be stated from above analysis entrepreneur should possess various skills and traits such as competitive, creative, innovative, passionate for his business and ability to take risk. Thus, diverse skill and knowledge of entrepreneur promote growth and success of business and helps in gaining competitive advantages in the market (Nawaz and Khan 2016).

P6 Entrepreneurial personality reflects entrepreneurial motivation and mindset

For success and growth of business it is necessary that the Entrepreneur of the company should possess certain skill and knowledge. Entrepreneur personality should be charming and attractive, possess innovating thinking and ability to take risk. He should be self-discipline and determined, courage to work effectively for success and growth of the company. Open minded and creativity thinking of entrepreneur helps company in expansion and gaining competitive position in the market. Thus, it can be understood that entrepreneur personality reflects entrepreneurial motivation and mindset as:

Passion: An entrepreneur should be curious and passionate about his work as if love what he does then he wouldn't be afraid of challenges. As they focused is to achieve their vision and mission, so they ignore various challenges arise while operation of business. Thus, entrepreneur personality of being passionate about his work act as a motivation to work hard for achievement of vision and its dream. Thus, it can be stated that passionate entrepreneur are highly motivated to perform their work effectively and helps in success of the organisation. (Khajeheian, 2017).

Optimistic: Entrepreneur are optimistic about the future and continuous look ahead, think out of the box in order to achieve predetermine goals. Successful entrepreneur not only set its goals in advance but also planned the way goals of the company have to achieve. Thus, optimistic characteristic of entrepreneur reflects its mindset that it possess the ability to look forward and to plans in before various strategies of company.

Positive Attitude: Positive thinking of entrepreneur helps in running business smoothly and effectively as he will be positive in any situation. Positive attitude of entrepreneur helps in meeting challenges easily and achievement of company goals. Thus, it can be stated that positive thinking act as motivation to run business and bear all risk related to it.

Surgency or Extraversion: Individual that are highly active, high intensive about their work become successful entrepreneur as they active take part in functioning of business (Hoppe, 2016). Thus, energetic entrepreneur can easily develop social network and expand its business due to highly active nature. Thus, Highly active explains that mindset of entrepreneur is sharp and he is ready to take risk associated with it

Conscientiousness: Individual that are responsible and disciplined that is complete their task on time and know about their duties and work. Such entrepreneur helps in success and growth of business as their focus to achieve goals effectively. Thus, will be disciplined and focused towards its work act as motivating factor for the entrepreneur .

Creative: Entrepreneur are creativity and innovative as they develop new ideas to promote grow and success of business. They think out of the box in order to bring new ideas and innovation that helps in expansion of business (Hamdan and et.al., 2019). Creativity personality of entrepreneur reflects it mindset and motivate it to work effectively for achievement of company goals or dream. Thus, he will bring new and innovative ideas and innovation that helps in achievement of organisation goals and keep him satisfied .

Courages: Entrepreneur possess courage to start a business and ability to take risk associated with it as it is basic part for any new business. Individual that have courage to established business by undertaking risk are highly motivated and focused towards their work (Yahaya and Ebrahim, 2016). They know about various rewards the business can give to them if it grows and succeed. Thus, Courage to take risk reflects its motivation and mindset of entrepreneur to run

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