The Impact of Small Industries on Post-Brexit Economy

This assignment delves into the significance of small industries in contributing to a country's economic growth after Brexit. It highlights the importance of entrepreneurial skills distinct from management skills and how experience fosters entrepreneurship. The content draws from various sources, including books, journals, and online resources, providing a comprehensive understanding of the topic.

ENTREPRENEURSHIP AND
SMALL BUSINESS MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
1. Different types of entrepreneurship ventures and their relation with the typology of
entrepreneurs...............................................................................................................................1
2. Similarities and differences between entrepreneurial ventures...............................................3
3. Impact of Micro and Small Businesses on economy..............................................................5
4. Importance of Small Businesses and Business Start-up in contribution to growth of social
economy after Brexit...................................................................................................................6
5. Characteristic traits and skills of entrepreneurs which differentiate them from managers.....7
6. Influence of experience and background which can hinder or foster entrepreneurship..........8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................11

INTRODUCTION
The term “Entrepreneurship” can be described as designing, launching, organizing or
creating a new business which can often be initiated as a small business. Small business owners
manage all the aspects of their company. Management is basically the alignment and
coordination of various activities running in an organisation . Entrepreneurship and Small
Business Management helps in building entrepreneurial skills' step by step. Every business
whether large or small requires entrepreneurial skills to survive in the competitive world.
Entrepreneurship and small business management help entrepreneurs to gain experience and
learn unique skills which can help them to develop a new business(Scarborough, 2016). The
report will outline different types of entrepreneurship ventures and their relation to the typology
of entrepreneurship. Also, it will focus on the impact of micro and small businesses on economy.
MAIN BODY
1. Different types of entrepreneurship ventures and their relation with the typology of
entrepreneurs
Types of entrepreneurship ventures:
Micro Enterprise- Micro Enterprise is that enterprise where the investment done by the
entrepreneur is below 25 lac. The micro enterprises have fewer employees and also they have
less revenue in comparison to regular sized business. The owners of this type of enterprise can
have employees up to 7. This type of local businesses like grocery store, plumber, electricians
etc. are also better for local economy. Most of the micro enterprisers owner are sole proprietors.
They have full control over their business.
Small Enterprise- Small Enterprises are those enterprises where the investment done by
the entrepreneurs lie between 25 lac to 5 crore. The small enterprises owners can have employees
up to 15 - 49. Social enterprise owners also have some social responsibility towards the
environment. Often this is seen that they are not fully engage in maintaining social responsibility.
The reason can be because of the size of business or engaged in the day to day activities of their
company (Schaper and et.al, 2014). The major challenge for these type of enterprise is finding
new customers and reaching new type of markets. They also maintain a close relationship with

their customer. The major cause of failure for small business can be low sales and no keen
knowledge of the environment
Medium Enterprise- Medium Enterprises are those enterprises where the investment
done by entrepreneurs lie between 5 crores to 10 crores. These type of enterprises can have
employees up to 50 to 249. The investment in plant and machinery is very high in comparison to
small and micro enterprises. The entrepreneurs also have huge responsibility towards
environment and the people. The risk of loss is also very high for the entrepreneurs who are
running these enterprises.
Typology of Entrepreneurship:
Small Business Entrepreneurship: Small business entrepreneurship includes businesses
like opening of grocery store, cloth store, hair and beauty salons, carpenters, plumbers,
electricians, etc. who run their own businesses and have full control over business and are in
fully of charge of these businesses. Main aim behind small business venture is to earn a basic
earning which can help the entrepreneurs to feed their family and earn a reasonable amount of
profit. The funding in this type of business is done via friends or family.
Scalable Start-Up Entrepreneurship: Scalable Start-Up is totally different from Small
Business Entrepreneurship. The entrepreneurs here set a vision which could change the world.
Investment in these types of start-ups is done by venture capitalist. The best start-up is funded by
venture capitalist (Burns, and Dewhurst, eds., 2016). They search for repeatable and scalable
business model.
Large Company Entrepreneurship: Large Companies grow through innovations,
creativity and offering new products. They have keen knowledge of customer tastes and
preferences, new technology, new legislations, etc. The innovative products discovered by the
large companies can be difficult to execute. Large Companies size and culture makes difficult to
execute the innovation.
Social Entrepreneurship: In this type of entrepreneurship, the entrepreneur focuses on
creating those products which fulfil the social needs of the people. The goal is to make world a
better place, profit maximization or wealth share is not the motive of these types of
entrepreneurship.

2. Similarities and differences between entrepreneurial ventures
Basis Small Business Scalable Start-Up Large Company Social
Entrepreneurship
Financial
Goals
The main aim of
small business is to
earn a living from
which they can
feed their family
members, and earn
reasonable amount
of profit. The
funding in these
business is done by
friends and
relatives.
The scalable start
up is done by the
entrepreneurs to
earn a huge amount
of profit by
producing
innovative products
or ideas. The
funding in these
types of start up is
done by venture
capitalist.
Large companies
want to earn a high
profit by selling
new products in
existing market or
by selling new
products in new
market range.
These business
focuses on creating
social value in the
market by creating
those products
which can fulfil
social needs of
people. Creating
wealth is not a
main aim of these
type of enterprises

Risk Factor Risk is involved in
every type of
business whether it
is small or big. The
small businesses
are also bounded
with risk factors
like theft, employee
dispute, poor
customer service,
threat of substitutes
and competitors
etc.
The start-ups are
always bounded by
various type of risk
like design risk,
development risk,
funding risk,
economic risk,
legislative and
policy risk,
maintenance risk,
management risk,
operation risk etc.
The risk faced by
large businesses
can be strategic
risk, compliance
risk, operational
risk. The
companies'
reputation can be
ruined if they can't
overcome these
risks.
The social
entrepreneur also
faces risks which
includes hindering
of human rights,
hazardous working
conditions, dispute
related to land,
polluting
environment,
following
corruptive policies,
breaking laws etc.
Rewards Rewards are also
important for small
business to retain
employees and to
motivate them. The
rewards given by
small business can
be both in
monetary and non-
monetary terms.
The rewards given
in the start-ups can
be chilling work
culture, flexibility,
break hours during
work. All these can
make the
employees stay
with the
organisation.
Large companies
also provides
various benefits to
their employees in
terms of rewards
like training of
employees,
recognition in front
of peers, cash prize
or gifts, vip meet
and greet, warm
welcome of
employees, holiday
with family, free
dine in luxurious
hotel etc. These
The social
entrepreneurs also
give rewards to
their employees on
their awesome
contribution in
office. These
rewards can be a
gift or cash prize or
appreciation in
front of all the
peers, thank-you
note etc

benefits make
employees more
productive
Marketing
Communic
ation
The small business
communicate in the
market by grabbing
the attention of
customers,
imparting
information which
the consumer
require or they also
use online portal to
communicate.
The main mode of
communication for
the start-up is their
products. By
producing
innovative and
creative products
they can grab the
attention of the
people.
Large businesses
communicate with
the people through
advertisement on
television, radio or
even by using print
media like
magazines,
newspaper, journals
etc.
The social
entrepreneurs can
communicate with
the people by
showing their
impact in work,
involving the
general people in
their transaction,
aligning the cause
with consumer, by
delivering a stellar
product.
3. Impact of Micro and Small Businesses on economy
Small and Micro enterprises are currently on boom in United Kingdom. There have been
a number of start-ups in the year 2013-2014. The economic climate in UK is in favour of these
enterprises(Matchaba-Hove, Farrington, and Sharp, 2015). 99% of Britain business can be
classified as small or micro.
Turnover- The small and micro industries have a combine turnover of 1.6 trillion in
united kingdom. This turnover consists of 47% of overall turnover of private sector industries.
Employment- The major employment in United Kingdom is done by small and micro
enterprises. The small enterprises employees 24.3 million people in UK which comprises for
60% of all private sector employment and 81% of workforce. Small businesses are engine of
growth which provides huge employment opportunities

Growth- The most rising enterprises in UK are small and micro enterprises which are on
boom in the country. The growth of these industries are because of many factors like innovation
is the main key to the growth of these industries, producing creative products and always
bringing something new to the market. Reports say that 37% of small and micro enterprises are
engaged in innovative activities(Scarborough, 2016). Small and micro enterprises are giving
tough competition to other existing industries. There was a 47% increase in small scale industries
between year 2008-2013 which also led to recovery of UK's economy after recension in the year
2007. Small industries have a great role in lifting UK after recession. The entrepreneurial spirit is
very high in united kingdom.
Industry- The retail, manufacturing, service and the small industries are the largest
industries which are running in United Kingdom and these industries are heart of UK 's
economy. 47% of small industries' revenue come from engaging in activities related to
manufacturing, retail or service. Also, 3 out of 20 every small enterprise are engaged in these
activities(Goss, 2015). So it is quiet clear that how essential these industries are for UK's
economy. These industries have a mutually beneficial and symbiotic relationship with country's
overall economy. This time in Britain is best for opening any small scale industry or having a
start-up. The contribution of these industries is vital for countries economic health and also play
an important part in countries well being. These industries also give individual financial
independence, encourage innovation and creates employment. These businesses also involve low
amount of risk as the investment in plant and machinery is low in comparison to large firms.
4. Importance of Small Businesses and Business Start-up in contribution to growth of social
economy after Brexit
The economy of UK has faced a critical juncture. Leaving EU has many economic
challenges for UK which has resulted in widespread policy change. The economy of UK is
growing but it largely accounts for increase in employment rather than productivity. The UK
workers are currently 30% less productive than their counterpart USA workers. However, the
growth of Small and Micro enterprises has affected the growth of UK's economy and has a
leading charge over it at the consumer level. The people running these small industries consists
of sole proprietors who are offering retail services, which has increased the number of Self

employed person in UK(Solomon, and Linton, 2016). The services by the self employed person
are also provided online. These people work on quality rather than quantity, so the quality of the
products are improves in the country.
The small and micro enterprises are the only enterprises who has fulfilled the evolving
demands of the people after the departure from EU. The country is focusing more on the
development of localised economy which can create a more stable economic
structure(Laukkanen, and Tornikoski, 2018). Small and micro industries reacts very quick to
change, they have adopted the changes very easily in comparison to large scale industries as
there structure is so rigid which cannot be changed more often. The large scale industries is
unable to keep a pace with consumer habits. Small scale businesses are flexible and stable which
has allowed them to retain potential consumers. The use of social media has also helped small
enterprises to advertise their product and communicate with consumers more easily. As per
report 80 new companies are formed each hour in UK, which has created a hug employment
opportunity for people. These industries are also more sustainable to shocks as they have a lower
field of operation.
The small businesses are the lifeblood of the UK economy. The small and micro
industries are following many strategies for the success in the country, which are applying new
technology, agility, accelerated innovation, attracting and retaining talent. The small industries
are using new technology to drive sales and improve efficiency of the business. They're also
using online platforms, virtual networks and products which attracts consumer to increase their
sale. These factors have contributed to the growth of small industries in the country. SME's are
providing innovative products by recruiting high calibre innovators or by using a new software
design or by creating a team who is responsible for driving innovation(Dees, 2017).
Theses industries are also attracting or retaining talents by providing them with many
monetary or non monetary benefits, flexible work arrangements, good working condition,
supportive seniors, attractive stock options, good salaries, and many other incentives. These
industries are also following the criteria of being open to any type of investment and are free to
open to the new markets. These industries try to recruit new and skilled workers who are perfect
in their work. The open trade by these industries have benefited the consumers for low prices and
by increasing the variety of goods and services.

Social enterprises are established in order to give social services to people of a region.
There sole aim is not the creation of profit. They maximise profit while providing benefit to the
society or community. Social entrepreneur is that person who have taken responsibility to solve
the social problem of common people and bringing social change. The growth of social economy
is that the government is also supporting these organisations. By getting influence from these
social enterprises large companies are also adopting CSR activities. This also attracts and retain
there consumers.
5. Characteristic traits and skills of entrepreneurs which differentiate them from managers
Characteristic of entrepreneurs-
Expert Idea Generator: Entrepreneurs generate innovative and creative ideas. They
create products which are innovative in nature. They are highly intelligent and also works as
problem solver for the enterprise. They generate those ideas which results in the growth of the
business. They have the ability to convert something boring into creative and innovative which
attracts the consumer, however managers do not generate any ideas ,they are fully engaged in
completing their task
Personal Achiever: Entrepreneur wants to achieve everything, he is self-motivated and
dedicated. He sees failure as an opportunity to learn something new and failure can't stop him to
earn whatever he wants to achieve. He is a self-driven person. They prefer a situation in which
they can control and handle a situation on their own(Drucker, 2014). The Personal achiever
consist of various characteristics such as, always asks for feedback Self-motivated, knowledge of
environment, Honest, decision making skill, in contrast to this manager only perform that task
which they are asked to do.
Risk Taker: Entrepreneurs wants to achieve their goals for this they are willing to take
any amount of risk, they are risk takers. They are not immune to fear while managers are this
person who have no potential to take risk, they have a confirmed job which do not includes risk.
Vision: Entrepreneurs look for opportunity everywhere. They always work on developing
new and innovative ideas, and that are the qualities which make them different form others. They
are always attracted and inspired by things or ideas which are yet to be discovered, they have the

vision in their eyes which no one else can see while managers are the person who tend to work
on companies vision, they don't have a vision of their own.
Passion and Motivation: The entrepreneurs are very passionate for achieving their goals.
These people are self motivated, they do all their task with full energy and
enthusiastically(Fayolle, and Gailly, 2015). They question themselves on frequent basis like is
there something that they want to achieve, something which can keep them awake, in contrast
managers perform in a way asked by his senior, they are not as passionate and motivated like
entrepreneurs.
Optimistic: Entrepreneur are optimistic in nature. They see failure as a ladder which
would lead them to success. They see positivity in every task they perform, however managers
may or may not be optimistic.
Good Communication: The entrepreneurs have a very good communication skill as
communication acts as a key of success for them. The entrepreneurs are also very keen listener,
they try to understand their consumer by listing to their demands.
Focus: The entrepreneurs have vision in their eyes and they try to focus on that vision so
that they can achieve it(Storey, 2017). They do not loose focus while achieving the vision, in
contrast managers are not that much focused like entrepreneurs, as they work on companies
vision and not of their own.
6. Influence of experience and background which can hinder or foster entrepreneurship
Experience and background can hinder and foster the entrepreneurship growth aspects. It
can be explained with the help of big five ocean model. Like for example
Openness to experience: entrepreneurs are the people who are open to experience, they
are more creative, emotional and adventurous. It can also be described as the extent to which a
person is imaginative or independent and depicts a personal preference for a variety of activities
over a strict routine.
Conscientiousness: This can foster the growth of aspiring entrepreneurs. In this they
posses quality of discipline and dutifulness to achieve their objective.
Extraversion: In this feature entrepreneurs are tended to be more outrageous and
extravagant, this can help them in fostering their careers in their field.

Agreeableness: Entrepreneurs tend to be friendly and open-minded in this which
supports them in adjusting to changing environment.
Neuroticism: They are secure and confident in every aspect which they are performing
which foster their growth.
Growth mindset vs fixed mind set
Entrepreneurs have growth mind set in which they believe that with every passing day,
they can learn something new.
Entrepreneurial characteristics supports in fostering the growth of entrepreneurship. There
features such as passion and motivation encourage individuals to perform better and brings up
new innovative and creative techniques. Also, entrepreneurs have a trait of having self
confidence and self discipline which enhance there productivity to perform and work. They are
also adaptable and flexible in nature which means the entrepreneurs adjust easily to the new and
changing environment. It is very necessary as only they can show there skills and qualities.
These individuals always search for opportunities that they can grab in order to explore new
ranges of market or environment. Entrepreneurs have the quality of taking risks, they are not
afraid of any threat or risk coming in there way. This characteristic provides them with more
opportunities to grow. Also, by this they are able to bring new and innovative products in the
market range. This helps them in creating brand loyalty and also support them in establishing
new customers. Because of this many new consumers are attracted towards the start up venture.
It helps them in building friendly relationship with customer. It helps them in establishing there
company or enterprises.
The background and experience of entrepreneurs are essential to understand knowing
how they can hinder or foster entrepreneurship. For example the famous entrepreneur Peter Jones
who is a well known business tycoon, recently appeared in BBC2 television series “Dragon
Den”. Peter has interest in various fields like television, mobile phones, travel and real estate. He
has a belief in “paying it forward” to some degree as he recently asked former UK prime
minister gordon brown to create an academy in London for upcoming entrepreneurs or the
students who wants to pursue entrepreneurship(Mugler, 2017). JK Rowling is also the best

example for how her experience has foster entrepreneurship. Rowling is the author of most
popular harry potter series having a net worth of $1 billion.
CONCLUSION
The report summarizes Entrepreneurship and small business management which includes
different type of entrepreneurship venture like micro, small and medium enterprise. Also, it
further covers typology which includes small business, scalable start-up, large company and
social entrepreneurship. The report further cover similarities and differences between various
entrepreneurial ventures on the basis of points like financial goals, risk, rewards and marketing
communication. Besides it the report also shows statistical data of impact of micro and small
industry on economy(Piperopoulos, and Dimov, 2015). Moreover, it also highlights the
contribution of small industries to the growth of economy of country after Brexit. It also shows
the entrepreneurial skills which are different from managers, and further it shows how
experience can foster the entrepreneurship.

REFERENCES
Books and Journals
Burns, P. and Dewhurst, J. eds., 2016. Small business and entrepreneurship. Macmillan
International Higher Education.
Dees, J.G., 2017. 1 The Meaning of Social Entrepreneurship. In Case Studies in Social
Entrepreneurship and Sustainability.(pp. 34-42). Routledge.
Drucker, P., 2014. Innovation and entrepreneurship. Routledge.
Fayolle, A. and Gailly, B., 2015. The impact of entrepreneurship education on entrepreneurial
attitudes and intention: Hysteresis and persistence. Journal of Small Business
Management. 53(1), pp.75-93.
Goss, D., 2015. Small Business and Society (Routledge Revivals). Routledge.
Laukkanen, M. and Tornikoski, E.T., 2018. Causal mapping small business advisors’ belief
systems: a case of entrepreneurship policy research. International Journal of
Entrepreneurial Behavior & Research.24(2), pp.499-520.
Mahadea, D. and Kaseeram, I., 2018. Impact of unemployment and income on entrepreneurship
in post-apartheid South Africa: 1994–2015. The Southern African Journal of
Entrepreneurship and Small Business Management. 10(1), pp.1-9.
Matchaba-Hove, T., Farrington, S. and Sharp, G., 2015. The entrepreneurial orientation-
Performance relationship: A South African small business perspective. The Southern
African Journal of Entrepreneurship and Small Business Management.7(1), pp.36-68.
Mugler, J., 2017. The climate for entrepreneurship in European countries in transition. The
blackwell handbook of entrepreneurship. pp.150-17.
Piperopoulos, P. and Dimov, D., 2015. Burst bubbles or build steam? Entrepreneurship
education, entrepreneurial self‐efficacy, and entrepreneurial intentions. Journal of Small
Business Management. 53(4), pp.970-985.
Scarborough, N.M., 2016. Essentials of entrepreneurship and small business management.
Pearson.
Schaper, M.T. and et.al, 2014. Entrepreneurship and small business.

Solomon, G.T. and Linton, J.D., 2016. Standing at the crossroad of knowledge: Technology,
innovation, entrepreneurship and the small business management–Policy
perspectives. Technovation.(57-58), pp.1-3.
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.
Online
Anna, T.P., Norat, R.T. and Anna, L.M., 2018 Factors Affecting Entrepreneurship and Business
Sustainability[Online]. Available through:
<file:///home/user1/Downloads/sustainability-10-00452%20(2).pdf>.