Contribution of Micro and Small Firms in UK Economy

This presentation critically evaluates the contribution of micro and small firms in the economy of the UK. It discusses the role of small businesses at regional, national, and global levels and analyzes their significance to the economic growth of the UK.

Entrepreneurship and Small
Business Management

The power point presentation will include the Following:
• Critically evaluating the contribution of micro and small firms in economy
of UK
•Identifying the role of small business and their contribution to the regional,
national and global level
•Analyzing the significance of small business to the economic growth of UK
•References

.
Critically evaluating the contribution of micro and small firms in economy
of UK
• Small business enterprises especially micro firms have been responsible
for the majority of the gross job creation specifically after recession.
According to the few researchers those who stated that small medium
enterprises produce a dis-proportionate amount of growth. As per the
report of National Endowment for Science, it has been analyzed that six
percent of small medium enterprises in United Kingdom have high growth
rate and these firms have generated employment opportunities for people
at large scale.

CONT.

Identifying the role of small business and their contribution to the regional,
national and global level
Small business entities are contributing a lot in social as well as economic
development of nation. There are approximately 3500 hundred small
companies has been established during the year 2015 to 2016. The favorable
economic and political condition has encouraged people to set up small
business in the country.
At national level, small medium enterprises are contributing a lot towards
economic development and generation of employment in the country. Small
medium companies play important role in the economic development and
sustainability of nation.

Small medium Enterprise contribution at national level

CONTD.
• At regional level
At regional level: Small business ventures such as Talent plus is providing
the other various opportunities to people in the nation. Small enterprise
also plays essential role in improving the labor market. It plays crucial role
in driving innovation within an industry. These business units help big
companies in managing their business operations (Dugguh, 2017). Small
business units provide resources to big organizations which are required
for fostering growth.
Both at regional and national level, small enterprises have played good role
in promoting the economic value.

CONT.
• At international level :
At international level: Small medium enterprise has made approximately
25 to 35 percent contribution to world exports. These business ventures are
becoming more engaged in strategic alliances and joint ventures, both
alone and in groups. Small firms support nations in development of
relationship with each other. In addition to this, Small medium companies
play crucial role in encouraging competition between industries at all
levels that is regional, national and international.

Analyzing the significance of small business to the economic growth of UK
As discussed above, Small corporations are contributing a lot in the
economic development of the country. These firms re considered to be as the
main generator of employment in UK. Small medium enterprise is important
as these firm through creative skills helps nation in attracting the investors. It
also plays important role in supporting country in increasing competitive
strength. Such business ventures have provided a new source of income for
government.

CONT.
• Small medium enterprise provides various opportunities to local people.
These business ventures are important, as these corporation helps in
improving economic system. It has been analysed that small medium
organisation has provided employment opportunities to approx..24.2
million people in UK in 2014. Since 2015, there were 5.5 million private
enterprises in UK Small medium companies are important as these are
those business ventures who plays significant role in creation of new
market. In 2016, small medium enterprise has provided employment
opportunities to approx. 15.7 million job to 60 percent of people in the
country (Mauer, Neergaard and Linstad, 2017).

• These firm are important as they encourage big companies to innovate.
Small medium enterprises also bring creative ideas which can be beneficial
for the development of society or nation. Small firm also supports various
development such as infrastructure, roads, transportation etc. in the
country.
• These are organisations which has assisted United Kingdom to overcome
the financial crisis after the Brexit. It is very much important for the
political parties and government in UK to support small companies in
fostering growth in context of progress and innovation. Combined turnover
of small medium enterprises comprises almost fourth seven percent of
private sector turnover, that is approx. 1.7 trillion.

Micro firm impact on economy.

References
• Dees, J.G., 2017. 1 The Meaning of Social Entrepreneurship. In Case
Studies in Social Entrepreneurship and Sustainability(pp. 34-42).
Routledge.
• Storey, D., 2017. Six steps to heaven: Evaluating the impact of public
policies to support small businesses in developed economies. The
Blackwell handbook of entrepreneurship, pp.176-193.
• Dugguh, S.I., 2017. Entrepreneurship and small business: Strategic
approach to alleviating poverty and corruption in Nigeria. GSTF Journal
on Business Review (GBR). 3(1).
• Mauer, R., Neergaard, H. and Linstad, A. K., 2017. Self-efficacy:
Conditioning the entrepreneurial mindset. In Revisiting the Entrepreneurial
Mind (pp. 293-317). Springer, Cham.

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