Impact of Small Businesses on UK Economy

This assignment delves into the significant role played by small business organizations and entrepreneurs in the UK's economic success. It examines various tools and techniques utilized by entrepreneurial ventures, highlighting similarities and differences among them. The analysis focuses on the essential characteristics and skills of an effective entrepreneur, emphasizing their contribution to business expansion and service quality enhancement. Furthermore, the report explores the impact of small enterprises on the nation's economic profile, particularly in light of Brexit, and outlines methods for fostering growth and development within these businesses.

ENTREPRENEURSHIP AND
SMALL BUSINESS MANAGEMENT

ILLUSTRATION INDEX
Illustration 1: UK position in technology........................................................................................6
Illustration 2: Entrepreneur's skills................................................................................................11
Illustration 3: personality dimensions...........................................................................................12

INTRODUCTION
Entrepreneurship is an activity of starting, designing and managing new organization. It
is considered as taking risk and implementing business plans for expansion and qualitative
services of entity. The present report is based on understanding different entrepreneurship
activities of Charlotte Street Hotel. It is one of the small business enterprise of UK that aims to
expand company and increasing in firm's qualitative services for contributing in financial
development of nation after Brexit. In this regard, various entrepreneurial ventures and its
relationship with typology of entrepreneurship can be determined. However, important
contribution of SME in country's growth is able to express through this study. In addition to this,
characteristics of entrepreneur including its effect entrepreneurial motivated is to be obtained.
Task 1
P1 Varieties of entrepreneurial ventures and their relations with typology of entrepreneurship
Entrepreneurship involves taking risk for uncertainty and strategic planning for resource
and fund allocation. Under this system, entrepreneur plans for designing and running entity
effectively. Therefore, an individual who takes risk for implementing business strategy also
makes decision regarding enlargement and service quality of firm. For development of small
scale enterprise, entrepreneur of the organization plans strategic techniques including funding
and managing resources for production and distribution of products. For instance; Due to Brexit,
UK got apart from European Union, therefore different business start up opportunities are
obtained that is useful for country's growth. It is determined that small enterprises plays crucial
role in economic stability of nation (Bae and et.al., 2014). In this regard, entrepreneur of
Charlotte Street Hotel takes risk for company's effectiveness as well contributing in economic
stability of UK. Therefore, it is planning for entrepreneurship ventured a disruptive product
inside. Different entrepreneurial ventures for enlargement and effective qualitative services of
organization can express as:-
Small business entrepreneurship:- It is related to start up any organization at small
level. Under this activity, entrepreneur makes plan regarded limited resources and fund. This
kind of entrepreneurship is suitable for family business, retail sector companies, travel agents,
electricians and carpenters etc (Baker, Grinstein and Harmancioglu, 2015). Hence, it remains
risky for small level entrepreneurs to operate business activities.
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Scalable startup entrepreneurship:- This entrepreneurship activity is related to
organizing business according to vision and attracting unique quality features regarding new
ventures. However, it is appropriate for scalable business model and rapid expansion of
enterprise. Under this technique, high amount is required for organizing and implementing plans
for effective fund and resource allocation.
Large company entrepreneurship:- It is related to taking risks for innovations and
adopting new technologies, legislation for enlargement and providing more effective qualitative
services of firm. In addition to this, large scale entities makes strategy for entering in new market
as well sustaining their products etc. Along with there is highest level of risk is obtained in
operating business activities (Bird, 2015). It is extremely difficult to attract customers for new
goods and services in innovative market same as facing competition.
Social entrepreneurship:- Social entrepreneurs are those risk takers who focuses on
providing products that is useful to solve out society's needs and problems. These are established
for public welfare at most and contributing in country's social and economic growth. Thus, its
target is to make decision related to society's awareness and creating wealth for founders. It is
beneficial for nation's development and contributing effectively in all other sectors of nation.
Such as; employment, tourism, production related to export-import of goods etc (Bruni, Gherardi
and Poggio, 2014).
Thus, above mentioned entrepreneurship are related to expansion and developing
efficiency of firm. In all the forms, entrepreneur takes risk at various levels that impacts on
country's effectiveness. However, startup organization and its plan are related to making
decisions for proper business and competitive strategies.
Entrepreneurial ventures relation with typology of entrepreneurship:- Typologies are
related to understanding relationship between entrepreneurship forms and their subjects. These
are beneficial for identifying competences needed by each entrepreneur. Hence, typology of
entrepreneurship is interrelated with several entrepreneurial ventures. However, it is useful for
enhancing efficiency and performance of business organization. It generates different ideas to
express need, self awareness. Further, typologies are implemented from several strategies and
decision making styles. In accordance to this, small business enterprises get developed by
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applying various innovative actions as typologies that leads to succession on behalf of which
decisions are made to run entity efficiently (Bruni, Gherardi and Poggio, 2014).
P2 Similarities and differences between entrepreneurial ventures
Entrepreneurial ventures initiate innovations for taking risks and expanding business
organization effectively. They looking for changes and implementing activities for adequate
production and distribution of resources. In accordance to this, mutuality and variances between
entrepreneurship can describe as below:-
Similarities:- Entrepreneurial ventures are key components for more profit gaining and
enlargement of entities. In this regard, entrepreneur take risks and prepare strategies for better
performance of entity. All factors implement plans for more action and more energy. It is
beneficial for small businesses' enlargement and wealth creation. However, innovations and new
technologies are accepted for enhancing qualitative services of businesses enterprises. Moreover,
through entrepreneurial ventures, different organizations achieve efficiency and increase strength
regarding business and competitive strategies (Carland, Carland and Stewart, 2015). It influences
systematic resource and fund allocation for enterprises' growth. However, these entrepreneurial
enterprises remains helpful for nation's growth as well valuable for effective economic profile of
firm. In this regard, different entrepreneurship plays vital role in employment and other sectors
of country for improving working efficiency of nation. In addition to this, it is determined that
entrepreneurial roles are effective for developing for high growth and proper planning for
business entities.
Differences between entrepreneurial ventures:- All entrepreneurial ventures are
different for various sectors and business in different ways. Therefore, different entrepreneurship
including small businesses, social, large entities and social entrepreneurs take risk and innovate
in different forms. Thus, all ventures have different levels of risks and contribution at several
stages. In this process, small business entrepreneurship involves family businesses, retail
companies and all small medium enterprises that prepares planning and manages business
activities at small level (Carraher and Paridon, 2015). There are uncertainty for profit at normal
level to implement action plans regarding business and venture planning. Under small business
entrepreneurship, entrepreneur makes decision for management and expansion of firm at low
level.
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In addition to this, scalable entrepreneurship includes strategic plans for enlargement and
efficient qualities of organization. Therefore, according to vision and requirements, innovative
ideas and strategies are implemented for stability (Castello, Barbera and Vaara, 2016). In
accordance to this, measurement of business performances and activities are analyzed on behalf
of which entity expands. It proceed to follow prepared strategies efficiently to reach out set
target. However, business venture is created for effective business organization. It influences
proper management and quality services of firm effectively. Moreover, large company
entrepreneurship involves innovative tools and techniques at highest level of risk uncertainty.
Under this system, new market and entering innovative products are produces for preparing more
efficient services. Hence, there is high level of risks occurs for implementing actions related to
business effectiveness. It is considered that largest uncertainty emerge for firm's efficiency. In
addition to this, social entrepreneurship is valuable for creating effective business profile and
social welfare (Charness, 2014). Thus, social entrepreneurs make decision related to producing
goods and services to aware society and preparing strategic planning procedure regarding facing
uncertainty as well providing different qualitative services to million needed people. It influences
country's development as well useful for helping other sectors of nation.
Hence, different entrepreneurial ventures have different kinds of uncertainties. Similarly,
quality services, planning procedures and role for enhancing sector are determined in various
forms. However, techniques to manage risk are different for expansion and enhancing qualitative
services of business organization.
Task 2
P3 Data interpretation and recognizing small business impact on economy
Small business enterprise contributes in country's economic growth after Brexit. In this
regard, Charlotte Street Hotel plays essential role in nation's effectiveness. It influences financial
development and qualitative services of hotel facilities. In addition to this, expansion of
organization by operating new branches in other countries is obtained that remains useful for
expansion of entity at high level (Cherny and et.al., 2016). In this regard, manager of
organization recognizes business performance and obtains variety of different outcomes that are
as follows:-
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Taking advantage of government policies related to expansion of SME is useful for
increasing profit earning capacity of firm. In addition to this, it is recognized that last yaer
company earned 5% profit that increases to 7% in present year. It is due to government policiies
help and increasing satisfaction level of customers related to service quality of hotel. It
influences production and demand of goods that impacts on market position of firm. However,
entire development of organization is obtained that is liable for further business activities.
In addition to this, small business unit as Charlotte Street Hotel is crucial for nation's
effectiveness in hospitality services and also enhances employment for UK. It is beneficial for
expansion of company related to establishing new branches in country and other nations of the
world. However, it is determined that innovative ideas are generated for expansion and
qualitative services of business unit is obtained effectively. Therefore, as per data interpretation,
it is analysed that last year company spent little money for business operations that was not
adequate related to spent and gaining. However, in present year, organization spent effective
money that leads to gain growing environment of firm. It influences productivity and
profitability of firm. It is because of adopting innovative technologies and new tools for
attracting customers (Dooley and Kenny, 2014). However, it is also identified that entity's
market reputation is also developed that remains helpful for further effective sustainability. In
addition to this, following on various strategies made for expansion and contribution in nation's
economic stability is useful for overall development of country. Thus, as per data interpretation
and recognizing overall position of company, it is determined that organization has played
effective role in monetary and other sectors' development of UK after Brexit. Moreover, various
tools and techniques are achieved by small enterprises for financial development as well
improving efficiency of country is determined.
Establishment of small business enterprise impact on economic and social growth of UK
can be understood as follows:
 Increasing employment: Small business entities play efficient role in country's
development. However, there is increasing small businesses recognised affect economic
and social development (Mudalige, Ismail and Malek, 2016). Including this, it is
recognised that after Brexit, there is 2-3% increase in small businesses determined also
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linked with its economic growth. Moreover, in recent time, it is getting increased
indicates to be maintained and enhanced in the future.
 Technological growth of country: Through increasing number of small unit enterprises,
technological growth is also identified that can be understood with the help of following
statistical data as:
It is interpreted that technologies in UK get developed since 2011 at maximum level.
Including this, there is continuous growth is recognised for adopting new technologies and
improving business efficiencies. However, it impacts on productivity and profitability which is
also getting enhanced on large scale. Therefore, UK is getting developed in terms of technology
which can be forecast to maintain and improve for the further years.
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Illustration 1: UK position in technology
(Source: Technological development of UK, 2016).

 Enhancing sales revenue of industries: Through increasing of small businesses'
productivity and profitability of UK in respect of different industries including retail,
manufacturing get increased. It influences sales revenue and profit margin of enterprises
also contribute in country's development (Carland, Carland and Stewart, 2015).
Thus, it is identified that small business enterprises impact on country's effectiveness and remain
helpful to increase efficiency at maximum level.
P4 Importance of small businesses and theirs establishments to country's growth after Brexit
Due to Brexit, United Kingdom get apart from European Union. Therefore, country's
structure impacted in different sectors as economic, employment, production and other sectors.
However, financial condition and other components of country affected at different levels. It
proceed to enhancing business organization as well establishing new enterprises for nation's
development. In this regard, innovative ideas are generated for enlargement of small business
entities as well opportunities are obtained for establishing new entities. It is interrelated with
employment (Drucker, 2014).
It is determined that Brexit makes opportunity for starting up new businesses and
expanding small level organization at high level. It is beneficial for country's development
remains able to reduce immigration and enhancing demand for gaining profit. However, different
sectors of nation influence efficiently regarding self employed and various job creations are
recognized. It affects on GDP data and government policies to get benefited related to important
area for boosting growth. In accordance to this, adopting innovative ideas and techniques lead to
enlarge small and medium size entities as well opportunities are emerged for establishing new
entrepreneurial ventures. It increases strength as well reduces weaknesses of nation for economic
stability of country (Fayolle and Gailly, 2015). It interrelates with other sectors of nation such as;
employment, production, finance and tourism. However, demand and supply including service
qualities of nation get impacted. It is interlinked with other innovations to enhance efficiency.
Different economists express their views on UK economy that Brexit generates
opportunities for small entities to develop as well starting up new organizations can be effective
for nation's development. However, entire development and good relations with other countries
of the world is obtained that remains helpful for effectiveness. For monetary stability of nation,
innovations are determined which is related to proper management of nation effectively. In this
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regard, contribution of small entities and new establishments are useful for nation's effectiveness.
Business performances of entities get improved by taking advantage and following prepared
strategies for developing efficiency. As per analyzes, it is considered that Brexit impacts on
Foreign Direct Investment (FDI) position. It reflects with link of country with other nations. It
generates opportunity for small level organizations for enhancing export of goods. It enhances
financial development of organization that is useful for nation's monetary profile. It remains as a
challenge for UK after Brexit to increase productivity and profitability. Therefore, various
techniques are implemented for small business expansion as well starting up new entities for
nation's development. Thus, expansion and starting up of new business entities are useful for
growth of country that impacts on export and import of goods provided by company.
However, increasing of branches and useful techniques for expansion of small business
unit leads to create developing environment of nation. Thus, different entrepreneurial ventures
are useful for increasing profit earning capacity as well environmental factors get affected. For
expansion of small businesses, government makes policy plans to boost for employment and
entire sectors' development (Hmieleski, Carr and Baron, 2015). Hence, after Brexit different
opportunities are obtained for expansion and establishment of entrepreneurial ventures to
increase efficiency of nation. By contributing in nation's economic stability, small businesses get
developed as well increases efficiencies of all sectors' implementation.
Task 3
P5 Characteristics of entrepreneur and differentiate with managers
Entrepreneurs are those initiators who take risk and prepare strategy for establishing new
entity. They accepted challenges by implementing innovative ideas regarding unique business
operations. However, there are different kinds of entrepreneurs who handles difficult situations
as well prepares systematic plans for effective business operations. Some important
characteristics and skills of ideal entrepreneur can express as follows:-
Take risks and accepts challenges:- It is one of the most crucial characteristic of
entrepreneur to take risks and accept challenges occur for establishing new business enterprise.
Including this, different innovative ideas and techniques are generated for producing new
products in market as well unique variety and feature of services are obtained (Mudalige, Ismail
and Malek, 2016). In this regard, at initiate stage, entrepreneur takes risk related to investing
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fund for starting up and applying strategies for qualitative business organization's activities. It is
considered that entrepreneur must have this quality feature for establishing and accepting new
changes related to resource and fund allocation. It is interrelated with different skills such as
leadership in which entrepreneur initiates risks as well takes starts business with proper resource
and fund allocation. In addition to this, challenges that occur for entrepreneurship are accepted
by generating innovative ideas and techniques for expansion and better performance of business
entity.
It is essential for any entrepreneur to be risk taker and handle all kinds of obstacle occur
in business activities. For example, after Brexit, UK get separated to European Union that
impacts on effectiveness and structure of nation including economic and other sectors. Therefore,
several opportunities are obtained for expansion of Charlotte Street Hotel as well as a small size
enterprise. Moreover, government policies are made for boosting entrepreneurs related to
establishing new business enterprises. In this regard, it considers as good chance for country to
take advantage of entrepreneurial ventures (Schlaegel and Koenig, 2014). It is related to quality
and skills of risk taker's potential that at which level he can take risk and handle business
operations for expansion and management of hotel.
Thus, entrepreneurs of any enterprise are those initiators and risk takers who makes
decision for expansion of entity. Similarly, an entrepreneur has skill to solving out any issue
occurs at workplace that by formulating, implementing and evaluating strategies for business and
competitive advantages. In accordance to this, entrepreneur of firm takes initiate for adopting
innovations as well implementing action plans related to enlargement and enhancing qualitative
services of organization for resource and fund allocation. In addition to this, entrepreneurs have
quality to manage fund and resources regarding production and distribution of goods. However,
different strategies are prepared for starting up and expanding quality features of organization.
Competitor:- An effective quality of entrepreneur is considers as competitors. In this
regard, it is determined that risk taker implement plans for launching, advertising and sustaining
products in market. However, he makes plans and policies regarding marketing activities of
organization's produced goods. Thus, enterprise as a competitor has sense to increase product
value and increasing competitive strategy of firm (Zhang, Song and Zhong, 2016). In accordance
to this, various tools and techniques are applied by entrepreneur for taking advantage of
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competition in market. It is related to implement different methods for expressing launching new
products and innovative features in market. It is essential characteristic of entrepreneur to make
company's products as attractive as possible. In this regard, it is determined an ideal entrepreneur
focuses on market structure and customer demand related to product services. It influences
productivity and profitability of organization. Moreover, competitor faces competition and
makes plan to maintain customers' attraction towards goods and services. It involves
concentrating on different determinants such as market position, demand and so on. On the basis
of these identifications, entrepreneur makes plan for adopting techniques related to enhancing
competitive and business strategies of organization. It is related to action planning regarding
maintaining and sustaining good reputation in market.
Thus, an entrepreneur has different kinds of characteristics and skills for establishing and
expanding business activities. It is interlinked with proper management and effective efficiency
of company. Moreover, it includes communication, problem solving and other effective qualities
that an entrepreneur must have. It is related to business and competitive strategies that is related
to expansion and making place in market effectively (Cherny and et.al., 2016).
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P6 Entrepreneurial personality impact on business implementation
An ideal entrepreneur with effective quality skills is key element to develop suitableness
orgnaization and enhancing qualitative services of firm. However, systematic management and
proper method to make strategies are valuable for organization's effectiveness. In addition to this,
working efficiency of an entrepreneur presents business performance related to economic and
production of goods. It is recognized that entrepreneur are valuable for expansion and increasing
efficiency of firm. For example; entrepreneur has leadership skills that involves initiate and
accepting challenges occur at workplace. In this process, entrepreneur of any enterprise takes
risk and implement action plans related to expansion and operating new organizations for
effective production and distribution of goods. It is related to enhancing quality features of goods
(Fayolle and Gailly, 2015).
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Illustration 2: Entrepreneur's skills
(Source:Characteristics of an entrepreneur, 2016).

Entrepreneurial personality impacts on business implementation affect his behaviour can
be understood with the help of OCEAN as personality dimension as describe below:
 Openness to experience: Through getting experiences and tacking risks, his curiosity
towards learning more get increases. Similarly, he become more broad minded and
develop his skills at higher level for business evolution (Bruni, Gherardi and Poggio,
2014).
 Conscientiousness: Having this skill, entrepreneur become more responsible and strong
towards his goals. However, his clarity and aims get more increased for achievement and
better understanding with business operations.
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Illustration 3: personality dimensions
(Source: The big personality dimensions, 2016).

 Agreeableness: In this way, entrepreneur's behaviour, trust, corporate nature grows.
Therefore, his intention and behaviour towards further business operations get enhanced
(Carland, Carland and Stewart, 2015).
 Extraversion: Entrepreneurial behaviour, innovator's talkative, outgoing and social
behaviour impacted positively which is good for business organization and its evolution
in the future time.
 Neuroticism/Emotional stability: Through this tool, it is recognised that having
entrepreneurial skill, he become more relaxed, secured and free from worry and anxiety
(Castello, Barbera and Vaara, 2016). Thus, having theses skills remain helpful for
entrepreneur to evolute its business and improving its services at maximum level.
However, these skills of entrepreneur lead them to operate business and taking risks. For
example; Di Walker of Karro Food group of UK took risk for retail, food service and export
market. In this process for establishing entity and maintaining its position in UK, he handled so
many difficulties as challenge with encouragement (Zhang, Song and Zhong, 2016). However,
he earned from loss to profit of 1000 jobs during that time. Therefore, his willpower and strong
attitude towards business operations is example for sustainability of this food group till today.
Similarly, Marks Zukerbucks, founder of Facebook is an ideal entrepreneur whose
invented Facebook is still in demand. Likewise, his dedication and strong zeal for creating
innovations and increasing society's interest towards social networking site lead him on the top
position (Charness, 2014). Therefore, it is identified that entrepreneurs' skills and characteristics
are helpful to be successful and implementing business continuously.
Taking risk for creating new innovations in business activities remains suitable for
effectiveness of entity and enhancing its efficiency. In this way, entrepreneur's personality and
special characteristics related with business implementation. However, new creation in business
activities created by entrepreneur enhances spirit to carrying on entity efficiently as well
effectiveness in business operations at high level. It is required for an entrepreneur to be risk
taker and making decisions regarding business activities positively. It is interlinked with
coordination of employees and employer for maintaining good relationship with other business
units. However, an entrepreneur characteristic as strong people skill is useful for effective
growth and contributing in nation's effectiveness. It influences communication and listening
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qualities for more effective business services. Including this, passion and strong work ethics
leads an entrepreneur to a successful businesses man. In this regard, entrepreneur's confidence
and disciplined behaviour as regularity for work impacts organization's effectiveness. It is
interrelated with country's development. For example; increasing in enterprises after Brexit in
UK is useful for economic stability and entire growth of firm. Along with it is considered that
entrepreneur's effective personality leads to organization to be more efficient (Bird, 2015).
Including this, varieties of skills and learning strategies are obtained to increase firm at high level
for increasing business and competitive strategies. Thus, entrepreneur is helpful for contribution
in country's development also impacts on employment sector of organization.
Task 4
P7 Method in which experience hinder or foster entrepreneurship
For encouraging entrepreneur to create innovations in businesses, different methods are
used such as; organizing events, establishing institutions and providing guidance for accurate
manner regarding operations. In this regard, varieties of innovations can be created in business
operations that is useful for organization's effectiveness and providing a unique featured qualities
of goods and services. Entrepreneurship is determined as an activity for establishment of new
enterprise including generating innovative ideas for organization's effectiveness. In this regard,
an entrepreneur takes risks and makes plan for enhancing efficiency of firm. He experiences
many tools to expand business and improving qualitative services of entity. Through this
entrepreneurship activity, I improved my several skills as well acquires positive result for
expansion and adopting challenges effectively. However, getting adjusted according to ups and
downs occur at workplace as well problem solving skills are developed. In addition to this,
through entrepreneurship recognizing after Brexit in UK generates positive outcomes related to
establishment and increasing efficiency for qualitative services. It increases good relationship
with other business units.
However, variety of skills and learning tact are determined through entrepreneurship and
increasing curiosity towards implementing business operations. In this regard, background
factors like; education, family, social network and experience get impacted on large scale. For
example; educational skills, degree and qualification of an individual lead him for dealing with
situations and operating business activities more effectively. Including this, it is also considered
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that entrepreneurship in inborn quality which emerges in an individual for being entrepreneur.
Likewise, society's environment and an individual's social network is also for emerging
entrepreneur's quality and creating something different (Castello, Barbera and Vaara, 2016).
Therefore, learning attitude, social network and behaviour of an individual leads him for being
entrepreneur and improving qualities.
Therefore, entrepreneur enhances his skills regarding business evolution and behaving more
effectively. It influences behaviour and qualities for business operations adequately (Charness,
2014). In this regard, entrepreneur's hidden quality also determines affect effectiveness of
entrepreneur and further activities. Moreover, several tools and techniques are obtained to
expand small business enterprise. Innovative ideas and adopting technologies for better quality
services are determined. In this regard, proper sense is created for contribution of small scale
industry in UK economic stability that is related to other sectors of nation including finance,
employment and production of organization. Thus, some information are gathered for expansion
and effective contribution in nation's development is considered.
CONCLUSION
The report is concluded that small business organizations and entrepreneurs play crucial
role in country's effectiveness. However, through this study,different tools and techniques are
determined for entrepreneurial ventures. In addition to this, various entrepreneurial ventures
including similarities and differences are considered. Effective characteristics and skills of an
ideal entrepreneur is obtained that is useful for organizing expansion and increasing quality
services are considered. Moreover, proper data interpretation for micro enterprise impact on
country's economic profile is recognized. Small business enterprise impact on nation's
development after Brexit is analyzed. Therefore, methods for entire growth of firm including
contributing in nation's effectiveness is determined through this report.
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REFERENCE
Books and Journals
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17

Technological development of UK, 2016. [Online]. Available through:
<https://www.gov.uk/government/publications/uk-digital-strategy/uk-digital-strategy>.
[Accessed on 13th October 2017].
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