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Entrepreneurship and Small Business Management | Gross Domestic Product

   

Added on  2021-02-21

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Entrepreneurship andSmall BusinessManagement

Table of ContentsINTRODUCTION...........................................................................................................................3TASK 2............................................................................................................................................3P3 Impact of micro and small business on economy.............................................................3P4 Importance of small business and start up for the growth of social economy..................6TASK 3............................................................................................................................................8P5- Entrepreneurial characteristics and skills which makes them different from organisationalmanagers.................................................................................................................................8P6-Entrepreneurial Personality Aspects and evaluating co-relation between entrepreneurialcharacteristic and it's success...............................................................................................10P7- Factors fostering or hindering entrepreneurial success..................................................12CONCLUSION..............................................................................................................................13REFERNCES.................................................................................................................................15

INTRODUCTION Entrepreneurship refers to the process by which an individuals launch and manage theirbusiness and industrial enterprise. On the other hand, entrepreneurs are the ones who risk andinvest their own capital into business and industrial ventures. However, they plays a vital role inthe development of UK economy as they provide enormous employment opportunity forindividuals which directly reflect over increase in Gross Domestic Product and enable firm toacquire wealth maximisation (Burns, 2016). At the same time, small business also has an integralrole within an economy as they takes an initiative to contribute towards local economies bybringing growth and innovation to community in which enterprise is established, This reportencompasses the concept of entrepreneur along with different types of entrepreneurial ventureand its typology. Moreover, role of small and micro business over economy growth as well ascomparison of two different entrepreneurs and analyse their successful stories with theapplication of relevant theories or models is also discussed here. TASK 2P3 Impact of micro and small business on economy These both regarded as an essential element for the growth of nation economy as mainlyfocus over innovation, diversity and flexibility. In simple terms, SME is a business with fewerthan 250 employees and a turnover of less than € 50 million or a balance sheet of upto €43million . Within this umbrella, there are three different categories i.e. medium – sized, small andmicro businesses as well as these categories are defined by turnover. Along with this, SMEsmake up around 99 per cent of all business operating within UK, and are therefore enormouslyintegral component for UK economy (Scarborough, 2016). Millions of people work in SME andthey are generally seen as key engine of growth and sustainability. On the other hand, microbusiness has fewer than ten manpower and either a turnover of upto € 2 million and a balancesheet total of up to € 2 million. However, it has impacted over UK economy in several areaswhich is explained below: On the basis of employment: Small and micro business plays a significant role inenriching life standard of community or society as they takes an initiative in providing enormousemployment platform as its percentage increases to 48% from the past 5 years. By this, they caneasily provide increased level of satisfaction as well as enlarge their market share in a better way.

On the basis of growth: In current scenario of UK, its business is enhancing day by daywhich provide direct contribution to economic growth. However, it is regraded as the main driverfor generating employment, adapting innovation that enable companies to improve their overallperformance among other competitors. Moreover, all these actions help UK economy it enlargetheir GDP rate as well as can cope with all financial crises for attaining best positioning withinindustry (STATE OF SMALL BUSINESS BRITAIN REPORT .2018). On the basis of turnover: As small and micro business are expanding their businessoperation across the UK, it helps them to control the turnover rate of an individual as well asmakes them more flexible to adapt innovation or novel ideas in order to gain competitiveadvantage in a productive manner. In the UK, there are some trends which is being important for industries to consume suchas shifting demand & supply and fluctuation in selection of prices. These level of trend hashappened due to political imbalances and economic situation. In UK, due to political imbalance,industries are in burden to pay more to initiate demand & supply of the good or services. Brexitis one of the critical reason for price based issues of goods or services. Impact of SME for two UK region

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