The Impact of Brexit on Small Businesses

This assignment delves into the consequences of Brexit on small businesses in Britain. It analyzes the various challenges these enterprises face due to Brexit, including changes in regulations, access to finance, and trading conditions. Conversely, it also explores potential opportunities arising from Brexit for small businesses, such as exploring new markets and reducing regulatory burdens. The assignment draws upon academic literature and real-world examples to provide a comprehensive understanding of the multifaceted impact of Brexit on small businesses.

Entrepreneurship and Small Business
Management

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................4
P1 Carrying out mini-research to examine different types of entrepreneurial ventures and
explaining their relation to the typology of entrepreneurship......................................................4
P2 Explore the similarities and differences between entrepreneurial ventures...........................5
TASK 2 ...........................................................................................................................................6
P3 Assess and interpret relevant data and statistics in your mini-research, to illustrate how
micro and small businesses impact on the economy...................................................................6
P4 Contribution of small businesses and business startups to growth and social economy after
Brexit............................................................................................................................................7
Task 3...............................................................................................................................................8
P5 Determine the characteristics, traits and skills of successful entrepreneurs, which
differentiate them from other business managers........................................................................8
P6 Assess how aspects of the entrepreneurial personality reflect entrepreneurial motivation
and mind-set...............................................................................................................................10
TASK 4..........................................................................................................................................11
P7 Examine, using relevant examples obtained through your mini-research, how background
and experience can hinder or foster entrepreneurship...............................................................11
Conclusion.....................................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Development of small business is the most important aspect through which country seeks
its own growth along with generation of employment and social development. However,
personality trait of entrepreneur plays important role in growth of the business. The present
report is based on Hawksmoor Group restaurants which is situated in London and deals in
several kind of spicy and sweet eatables. This entrepreneur operates with the association of 623
employees (Autio and et. al., 2014). It covers the mini research done over the different types of
entrepreneurial ventures and similarities as well as differences exist between them. Furthermore,
assessment is done on interpreting the statistical data that how economic contribution is made
through small and micro businesses. In addition to this, aspects of the entrepreneurial personality
reflecting the entrepreneurial mindset and motivation has been assessed. Apart from this,
characteristic, skills and traits of two successful entrepreneurs has also been identified along with
differentiation with other business managers (Brooks, and et. al., 2014).
TASK 1
P1 Carrying out mini-research to examine different types of entrepreneurial ventures and
explaining their relation to the typology of entrepreneurship
Entrepreneurship ventures includes risk tolerance, profit and loss, growth and learning from it.
Basically it means starting a new and small business. There are some business ventures
following as under:
 Lifestyle ventures: This type of business is established to earn specific level of income.
It’s mainly focused on lifestyle of persons. This sort of ventures can have satisfied their
possessor as well as their customers. There is no such growth in this kind of business
because sometimes growth can have ruined lifestyle.
 Survival Ventures: Such business which are founded for the need of survival of owner
and his family members is known as survival ventures. This type of businesses generally
deals in money and swap system.
 Managed growth ventures: These kind of businesses gives central attention to the
growth. These ventures are very balanced in nature and also helps owner in achieving
high profit. Its highly focused on business expansion and its growth.

 Aggressive growth ventures: There are many opportunities in aggressive growth
ventures because its funds are acquired from equity market which is technology based
market and full of growth. It gives expansion by trading in stock market.
There are different types of entrepreneurship which work differently in order to meet the
specific objectives of firm in an effective manner. These are explained as follows- Small business entrepreneurship-It consists of small businesses such as consultants,
travel agents and internet commence as well as grocery stores. They operate at lower
scale in order to meet the short as well as long term business (Crane and Matten, 2016).
Such kind of businesses access sources from bank loan, friends and relatives. It enables
corporation to carry out all business activities effectively in order to create competitive
edge of the business in the marketplace (Brooks and et. al., 2014). Generally,
employment of such kind of business is done on local business through which it becomes
easy to ensure the growth of the business in low cost of production. In this manner, small
business entrepreneurship starts at very small scale on the basis of specific risk. Here,
entrepreneur start the venture on the basis of available information and research so as to
determine its success in the marketplace (Kierzenkowski and et. al., 2016). Scalable startup entrepreneurship-Such kind of businesses attract crazy financial
investors so as to start the venture effectively. It proves to be effective to generate the
employment and accordingly firm can cope up with the changing scenario. Furthermore,
entrepreneurs starting such kind of corporation get to know about its operation from day
one so as to implement the concept effectively and determine long term growth in the
marketplace (Stenholm, Acs and Wuebker, 2013). However, scalable entrepreneurship is
applied for making profit and meeting the expectations of common citizen. The vision of
such kind of firms can change the entire world with the help of offering excellent
services. Large company entrepreneurship-The large organizations operate their business in
accordance with innovation, offering new products and sustainable development. They
like to extend the product range or variety effectively. Apart from this, large companies
shed light on changing perspective of customers, legislation and new competitors etc. sop

as to bring innovation in the product and retain customers for longer time span
(Rasmussen, Mosey and Wright, 2014). Moreover, large company entrepreneurship is the
effective aspect for generating employment and contributing towards the economy.
 Social entrepreneurship-It is different entrepreneurship under which management
focuses on uniqueness of the business and focuses on changing the world by performing
good. It can be critically evaluated that business do not work for the purpose of
increasing market share but to meet the expectations of all related stakeholders. Such
kind of corporations may be for profit or not for profit or hybrid (Altman, Sabato and
Wilson, 2010). This support the society by resolving its issues and offer better life for
common citizen living in the country.
In addition, they are related to typology of entrepreneurship, it means various types of
entrepreneurship are connected with typologies. Local business which is run by local people to
earn profit while global entrepreneurship is focused on offering their services at international
level and require more capital to run business. Its main aim is to earn wealth maximization along
with long term growth. They mainly aim to get higher returns on the products and services that
has been offered by them to public (Gronum, Verreynne and Kastelle, 2012).
P2 Explore the similarities and differences between entrepreneurial ventures.
Entrepreneurship is a process of creating and developing an idea and transforming it to
large business organization. These business ventures also support the national economy and
maintain consistent growth and development. In general, there are two types of venture first one
is profit generating and another one is nonprofit organization (Mason, 2015). Both having
different purpose and objectives according to its size and structure. These business and non-
business units can be local ventures, global business entities, social ventures and scalable
startups. These institutions having various similarities and differences. Scalable business venture
is small business which is focused on the innovation and technological developments. The
objectives of such organizations are different according to their type. If such business is not for
profit than it works for the social wellbeing (Rasmussen, Mosey and Wright, 2014).
There are few differences in the local ventures which are focused on the profits and
earnings in order to sustain their business. Apart from that they arrange their funds from other
sources such as banks, financial institutions and large corporate houses so that they can become

competitive in the market. On the other hand, social and nonprofit firms can take fund from
government authorities and large business units as a charity or member fee and provide social
wellbeing to the community.
Apart from that, both forms of entities support the community and public interest.
Along with this, there are some distinction between both business ventures which is their
contribution in country's economy (Stenholm, Acs, Z.J. and Wuebker, R., 2013). Social ventures
are engaged for creating social values through delivering its services to society and fulfil their
demand. On the other hand, global ventures is developing international brand and focuses only
on earning profits. Social ventures focus on using traditional marketing approach but global
ventures use modern way for promoting its business.
TASK 2
P3 Assess and interpret relevant data and statistics in your mini-research, to illustrate how micro
and small businesses impact on the economy.
A SME may not generate the revenue as compare to the large business corporations. But
they are the critical element in the contribution of the local and national economies. They
generate revenue and provide employment opportunities in the United Kingdom. As the UK is
one of the leading economy and financial hub of EU with approx. $2.5 trillion economy. The
role of SME in the nation economy is approx 90 percent which is quite good (farran, Gronum,
Verreynne and Kastelle, 2012). It also contributes approx. 5% employment growth to the nation.
Apart from that, there are various other impact on the UK economy as given below:
Employment:
which can transform in to the knowledge based economic model due to its SME capabilities and
education. They required qualified workforce to implement their ideas in an effective manner to
increase the employment rate in the country (Stenholm, and Wuebker, 2013).
Economic Growth: SME having a large contribution in the local economy by brining growth
and development and innovation in the society. It can help to create jobs and increase demand.
They also help to increase in the export activities which increase in the foreign currency
(Altman, Sabato and Wilson, 2010). They also maintain the supply in the economy and which

can also help to overcome the dependability of another nation for the imported products. They
provide revenue in terms of tax to the government which can support social and infrastructure
development in the country.
Adaptability: There are large number of small business which are ready to respond and adapt
change according to the economic environment. These business organisation are related with the
innovation and technology and worked on the customer centric approach. For example, in the
internet era, the e-business are growing which can help to make them successful in the near
future (Rasmussen, Mosey and Wright, 2014).
Future growth: The government of UK is more focused on the SME sector which can support
their economic activities and helps to maintain its growth rate in the today's competitive world
(Cowling, Liu and Ledger, 2012).
P4 Contribution of small businesses and business start ups to growth and social economy after
Brexit
The small business and start-ups indicates the growth of nation due to generation of
employment and increasing the risk taking behaviour of people. It has direct impact on the
employment rate and growth rate of the nation due to appropriate contribution towards the
economy. The small business and start up scenario of UK is increasing at rapid speed due to
opportunities available for them. It can be critically evaluated that Brexit as contemporary issue
of UK separate nation from EU (Kierzenkowski and et. al., 2016). This has direct impact on the
growth as well as development of the nation due to issue related to trade barriers, currency value
and others. It is because earlier businesses of UK were getting advantages of EU (Islam, Khan,
Obaidullah, and Alam,2011). It was very easy for businesses to expand in member countries and
export import goods effectively without any kind of barriers. However, businesses were
promoted with the help of EU funding and several other favourable aspects. It can be critically
evaluated that small media size businesses of UK can have upward direction because the
regulation will be formed in the nation and accordingly the typical laws related to employment
will not create issue in the growth and development of the business (Mason, 2015). For this
purpose, flexibility is considered as the positive aspect for the small business and start-ups of the
UK. On the other hand, export procedure of EU used to be very easy for the businesses in
operating in UK but after Brexit it would become complex. The main reason behind the same is

reintroduction of customer clearance procedures etc. On the other hand, present scenario reflects
that small businesses of UK are continuously thriving (The impact of Brexit on small businesses
revealed, 2017).
However, future situation might be little uncertain but possible changes in the regulatory
framework and funding facilities can support the start-ups of the UK. In this manner, the thriving
entrepreneurial culture of UK reflecting the positive aspect of newly formed business and other
small ones. It shows that Brexit will not have significant growth of the small business in case
government handle the another related responsibility effectively (Crane and Matten, 2016). On
the other hand, having own regulation, flexible approach and funding facilities of country as UK
would be more beneficial for small business and entrepreneur will start their own venture. It
would be effective to cater requirement of all related parties and also determine the social
development effective with the help of generation of employment. Thus, short term negative
impact of Brexit might be seen on performance of small businesses and startups of UK.
Task 3
P5 Determine the characteristics, traits and skills of successful
entrepreneurs, which differentiate them from other business managers.
There are various skills and characteristic required as an
entrepreneur which can them successful in whatever they do. As a
businessman, there are few things such as managerial and administrative
things, that can make a business more effective because of which he can
make decisions quickly and try to develop its own competencies in order to
influence its members and subordinates (Mason, 2015). There are following
traits and characteristic which can help to make them successful
entrepreneur in near future:
Personal Characteristics
 As an entrepreneur having a clear vision and mission regarding their business unit which
can provide a right direction to its business entities.
 Businesspersons have to be optimistic for their decision and future opportunities present
in the market (orsman,and Temel, 2011).

 Businessman also take initiative in order to solve a problem and issues which can help to
improve its problem-solving skills in near future.
 A start up runner can also motivate its subordinates towards the organizational goals and
objectives.
Interpersonal Skills
 As an entrepreneur leadership qualities played a significant role in order to lead a team
and deliver their vision into the reality.
 Communication skills are one of the most important ingredient which can make a leader
more attractive and impressive.
Critical skills
 A businessperson is able to see the situation in a different way and generate different
ideas to solve complex issues.
 There are various opportunities avail in the market which require careful identification
and recognition.
Practical Skills
 Planning and organizing skills and capabilities are necessary to attain the desired goals
and objectives (Bellucci, Borisovand Zazzaro, 2010).
 Business information and knowledge is also essential for an entrepreneur in order to
compete in the market and to provide competitive advantages over its rival companies.
Entrepreneurs Business managers.
A person who develop a business and take
economic risk in order to earn profit is called
entrepreneur (Crane and Matten, 2016).
The main purpose of the entrepreneur is to start
a business and make profit by selling goods
and services.
A manager is an individual who played a role
of controlling and managing business activities
within the business unit.
Their main motive of is to provide services in
existing established business entity.
On the other hand, a manager is a servant who

An entrepreneur is the owner of the business
and have full control on business (Autio and et.
al., 2014).
It is not required any specific qualification but
few things are essentials such as effective
management and entrepreneurial skills.
manages the operations and businesses.
As a manager there are certain educational
qualification required in order to perform its
role effectively (Brooks and et. al., 2014).
P6 Assess how aspects of the entrepreneurial personality reflect entrepreneurial motivation and
mind-set.
Entrepreneur is that person who has capabilities and skills to start and operate his own
business. He has the ability to influence other people through innovation and use of advanced
technology. They have many types of characteristics which make them a successful entrepreneur.
The most important characteristic which make them successful is taking risk for running
business operations in a smooth way. They set ideas for the next generation entrepreneurs and
motivate them through their skills and innovation (Brooks, and et. al., 2014). As stated above,
Sergey Brin and Jeff Bezos; both are famous entrepreneurs in the present era. They have
qualities to influence people and motivate them. For example: Sergey Brin is considered as the
youth icon who launched the application named as Google. Through this application, people
around the world can search anything and enhance their knowledge and information. Discipline,
determination and innovative skills are the major characteristics of Sergey Brin which make him
successful and inspire the world to change. At young age, he started his business and became a
successful entrepreneur. Passion, determination and taking high risk are the major characteristics
of founder of Amazon.com (Autio, and et. al., 201.). They motivated people to work with
passion and develop their own skills. People get inspired with their abilities and became more
passionate towards their work.
According to the world best entrepreneurs, a person must apply his/her idea in to reality
and make efforts in order to make it successful. It also requires a sense of discipline and
commitment which can help to attain their pre-set goals and objectives effectually. As an
entrepreneur, a clear vision and mission are also required which help to set the future direction of

their business (Crane and Matten, 2016). It also have high motivation and effective
communication skills which can motivate their subordinates so that they will feel confident and
free to work according to the guidelines of their entrepreneur. They develop effective
communication channels and managing skills which assist them for ensuring long term growth.
TASK 4
P7 Examine , using relevant examples obtained through your mini-research,
how background and experience can hinder or foster entrepreneurship.
Background is having a huge impact on the entrepreneurship. Most of the entrepreneurs
are influenced by their backgrounds and history. Each entrepreneur is having his own
background and family as well as education and standard of living. These are backgrounds are
making influence in their business activities. Backgrounds determine the level of thinking as well
as the point of views to consider different aspects. It sets the status of mind to take things in a
positive or negative manner (Kierzenkowski and et. al., 2016). So, it is essential for the
entrepreneur to think beyond their background. There are various challenges faced by an
entrepreneur such as financial crisis which can affect its economic consideration. Therefore, they
are required to think positively towards their business and its future growth and development.
Entrepreneur also influenced its education and qualification history in order to start their
business. Most of the people are using their skills and expertise which were learned in their
education and implement the same in business and operational activities.
Experience and knowledge are also playing an important role in the decision making
process to operate their business activities (Islam, Khan, Obaidullah and Alam, 2011). If a
person is having good knowledge about their respective area such as marketing, finance or any
other fields, it can help to make their decision making in an effective manner. On the other hand,
past experience for their procedures are also important. If such expertise's positive, it can
motivate an entrepreneur towards business and if the experience is negative, it can demotivate a
new entrepreneur. In context of success rate of start-ups and SMEs, the role of government is
significant. It is because, they have resources and capabilities in order to provide protection and
sustainability to such business ventures. They can provide financial assistance and management
expertise which can help to become successful in the future. Apart from that, higher authorities

can also provide legal protection and promote ease of doing business in the country (Borisov and
Zazzaro, 2010). It can help to make a healthy environment regarding the SME and develop a
start-up culture. The private ventures and corporate houses can also promote such business. They
can provide fund and knowledge which can make them successful in the near future. Most of the
start-ups cannot survive due to various reasons such as lack of knowledge and expertise,
unavailability of funds and tough competition. Therefore, the government of UK can make
various policies and rules as well as arrange sufficient funds to them (The Role of Small
Business in Economic Development, 2017).
CONCLUSION
As per the above mentioned report it has been concluded that entrepreneurship and
entrepreneurs has its impact on the economic growth and development of UK. It is significant for
a startup runner to take experience and knowledge in their field which can help to make effective
decisions in different area like accounting, finance and management etc. It can also help to create
competencies and competitiveness in the respective market and also provide good opportunities
for the future. As an entrepreneur there are various skills and capabilities that are required to
make their business successful such as risk taking, motivation, clear mission and vision,
discipline and so on. The report also includes the role of experience and knowledge in the
business and its significance in the economic development and employment generation in the
United Kingdom economy. It can also help to overcome various issues such as poverty from the
country.

REFERENCES
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Online
The impact of Brexit on small businesses revealed. 2017. [Online]. Available
through:<http://www.telegraph.co.uk/connect/small-business/impact-of-brexit-on-small-
businesses/>. [Accessed on 21st March 2017].

The Role of Small Business in Economic Development. 2017. [Online]. Available Through:
<http://isbdc.org/small-business-in-economic-development/>. [Accessed on 21st March
2017].