The Impact of SMEs on the UK Economy

This assignment explores the significant contributions of small, medium, and large businesses to the United Kingdom's economy. It examines the positive impacts of SMEs on cost reduction, customer relationships, innovation, and employment opportunities. The report also provides examples of successful businesses operating in various sectors within the UK.

ENTREPRENEURSHIP
AND SMALL BUSINESS
MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P 1. Various types of entrepreneurial ventures and its typologies.........................................1
P 2. Similarities and dissimilarities between entrepreneurial ventures..................................2
P 3. Impact of small and micro business on the economy......................................................3
P 4. Importance of business start - up's and small business to the growth of social economy5
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Entrepreneurship can be simply defined as a procedure of scheming, organising and
executing a business venture dealing with goods and services in marketplace. People who used to
run such ventures are known as entrepreneurs. They try to implement something new and unique
in order to seek attention of large number of civilians(Awogbenle and Iwuamadi, 2010). The
current report is based on Hilton hotel. In this project, important factors about entrepreneurship
and small business management has been described. Herein different kinds of entrepreneurial
ventures is going to be discussed.
TASK 1
P 1. Various types of entrepreneurial ventures and its typologies
Several types of entrepreneur ventures are stated below : Small business enterprise : Such firms are often very small in size which is started by an
individual or a group of person for earning profits so that they can survive easily. This
usually involves businesses of small saloon, grocery, electrician, travel agents and many
more. Scalable start – up entrepreneurship : These people are often novice their ideas for
changing entire conception of marketing area. They commonly search for sponsors who
supports their thoughts and help them financially. Large company entrepreneurship : Such firms are generally very large in size and
engages numerous of workers in order to manufacture products and services on time to
attract consumers as well as earning high profitability. Hilton hotel can be the best
example for such type of large venture. It is an international brand that offers hospitality
services with the help of their more than 570 hotels and resorts in around 85 nations. This
was founded by a great entrepreneur named as Conrad Hilton in 1919.
 Social entrepreneurship : They aim to create peace or developed social group and try to
do the same by implementing different events and plan of actions(Bruton, Ahlstrom and
Li, 2010).
Those above described ventures are interconnected with certain typology of business
which is discussed below :
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 Survival venture : It is interlinked with small business entrepreneurs since their motto is
earn money only for survival.
 Serial entrepreneur : This type of person come as well as enforce new business ideas but
in serial manner. This is to be noted that after implementing certain business, they give
responsibility to look after that to their associates and itself engage in something new.
 Lifestyle venture : Such person used to develop business having the purpose of
modifying their personal living style and not for the core intention of earning
profits(Desai, 2013).
 Female entrepreneur : Women who used to start commercial activities for making
profitability and improving their current situations in society.
P 2. Similarities and dissimilarities between entrepreneurial ventures
There are so many differences as well as sameness among different entrepreneurial
ventures that could be understand by below written points :
Types of ventures Similarities Differences
Female and male
entrepreneurial
 Both of them are
having identical level
of skills and
knowledges.
 Man and women
entrepreneurs give
same efforts for
finishing any job.
 Male one are frequently
comfortable in taking
decisions in logical
manner but females
often face difficulties
or remains in confusion
sometimes as per the
circumstances.
 Women concentrate
over making positive or
healthy relations with
their personnels, where
as male are generally
task oriented(Djankov
and et. al., 2010).
Small and social  Both ventures take use  The key aim of small
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entrepreneurial of creative as well as
innovative schemes for
accomplishing
predetermined
objectives.
 Both of them
concentrate on
potential customers in
order to sell their
deliverables for serving
them.
entrepreneurs to earn
livelihood. On the other
hand, social one
emphasizes on serving
to common citizens and
minimising problems
from society.
 Former one focus on
full filling their own
requirements and
needs. While latter one
wish to eliminate issues
from social group.
Large and scalable
entrepreneurs
 Both of them thought
to change whole
concepts and structures
of existing market.
 Large as well as
scalable ventures are
having ambition of
gaining more and more
benefits(Hlady‐Rispal
and Jouison‐Laffitte,
2014).
Large companies pursuit for
shareholders or stakeholders
for expanding their business
actions. On the contrary,
scalable try to find out venture
capitalist for supporting their
ideas.
First one involves limitless
profits as well as losses. While
second one comprises of fixed
resources and expenses.
P 3. Impact of small and micro business on the economy
Small and micro businesses are playing vital role in maintaining economic conditions of
a country. Like wise , there are various small companies in UK that is influencing its financial
situations in positive manner. Some of those effects are described below :
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 Regional impact : This has been observed that micro or small enterprises are impacting a
lot on the regional marketplace of United Kingdom. Different industries and rivals used
to develop effective market strategies as per the choices and curiosities of regional SME.
It assists in diminishing the number of unemployables at initial level and also helps in
introducing new techniques and innovational contents. It also influences the fiscal
situations of a nation, economy and exchanges of capitals as well. For instance, Hilton
hotel is also giving regional effects to all those regionally located areas. They are helping
in doing effective modification in terms of providing several facilities such as
accommodation, foods, entertainment, etc. National and International Impacts : Start-ups as well as micro businesses are playing
an eminent role in national and global commercialism since it aids in developing
standards of surviving of civilians of all over world. This has been recognised that UK
market has expedited around more than 29 million opportunities of jobs directly as well
as 1.9 million indirect jobs. More than 55 percent of youngsters are working in private
sectors of nation. This as a result increasing the collective employment ratio of country.
England is famous as one of most upper class nations internationally(Drucker, 2014).
Additionally, by the assistance of taxation policies, UK are getting more and more
support from the commercial enterprises to overcome from time period of crisis - full
situation. For instance, Hilton hotel is giving jobs to large number of people living in UK
and also who belongs to different other nations.
 Local Impact : UK is positively effected by the small commercial businesses in their
whole economic system. There are approximately 93 percent SME in overall country.
Local business and endeavours is giving greater impacts on nation's economy by offering
to a large sum of revenue in the form of tax paying. This also help states in creating
employment for youth group by providing works to all individuals. This in turn aids in
decreasing the possibility of unemployment in local regions and state. Each year, 64 % of
jobs opportunities emerge by the assistance of small business groups and start-ups firms.
In addition to this, these are also liable for interchangeability in marketplace and
industrial trends which supply change in entire modes of marketing and publicity. They
are capable of influencing the minds of masses by giving rise to new innovational things.
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For example, Hilton company is offering livelihood to local civilians and its services,
thereby supporting in their growth and development.
Illustration 1: The Role of Small Business in Economic Development
(Source: The Role of Small Business in Economic Development, 2017)
P 4. Importance of business start - up's and small business to the growth of social economy
This has been founded there is great significance of small-business as well as start up's in
United Kingdom which can be better understand by below mentioned table :
Importance Small-business Business start-up's
Values in Economic Parts This contributes in gaining
profit to every firm. It has been
playing important role in
economical growth
enhancement. This is availing
around more than 60 % of
occupations in UK.
This is the innovational portion
of each venture. The key aim
of such businesses is to
provide more opportunities
regrading chores and facilities
within nation. It aids in around
81 percent of improvement of
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corporation.
Attainment of revenues for
government via taxes
This is important facet of SME
since they pay large sum of
money in the form of different
types of taxes. Thus, helping
government bodies a
lot(Fayolle, 2013).
Companies who are recently
started are also paying tax to
legal system as they are
operating their business
ethically.
Social and Economical
Evolvement
This is considered as leading
source of UK that is
contributing in increasing jobs
as well as upgrading economic
situation.
These are also availing several
opportunities of occupations
and inventive services. They
give rise to unique
merchandises and meet
demands of all users.
Apart from this there are several other contribution of small firms and businesses which
are discussed below :
 Innovation : Small size companies carry out a deep investigation before starting their
business in order to find out new conceptions and thoughts for manufacturing better
quality merchandises or services for meeting the demands of customers. As a result this
gives birth to certain innovational based commodities and aids in living a better life for
civilians.
 Reduction of cost: The costing offered by small enterprises is quite low in relation to
the those imposed by larger business ventures. Hence, every person whether they are
poor or rich can enjoy by purchasing their deliverables.
 Improve relationship with customers: This is one of the optimistic effect of small scale
business as they aids entrepreneurs in generating a positive relationship with their clients.
These firms focusses on demands of users and provide the same to them.
Apart from this, there are some examples of small , medium or large businesses in United
kingdom which is listed below :
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 3Com corporation is considered as best example of small organisation which is located in
UK.
 ArchOver Ltd is an example of medium sized venture in United Kingdom.
 Hilton hotel is treated as large organisation that are offering hospitality services to
people.
CONCLUSION
From the above based report, it can be concluded that SME involves about more than
99.9 percent companies that are private and offers employment to large group of people . Thus,
they are impacting United Kingdom greatly by improving their conditions with respect to
economy and society.
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REFERENCES
Books and journals
Awogbenle, A. C. and Iwuamadi, K. C., 2010. Youth unemployment: Entrepreneurship
development programme as an intervention mechanism. African Journal of Business
Management. 4(6). p.831.
Bruton, G. D., Ahlstrom, D. and Li, H. L., 2010. Institutional theory and entrepreneurship:
where are we now and where do we need to move in the future?. Entrepreneurship theory
and practice. 34(3). pp.421-440.
Desai, V., 2013. The Dynamics of Entrepreneurship Development Management: Planning for
Future Sustainable Growth. Himalayan Books.
Djankov, S., and et. al., 2010. The effect of corporate taxes on investment and entrepreneurship.
American Economic Journal: Macroeconomics. 2(3). pp.31-64.
Drucker, P., 2014. Innovation and entrepreneurship. Routledge.
Fayolle, A., 2013. Personal views on the future of entrepreneurship education. Entrepreneurship
& Regional Development. 25(7-8). pp.692-701.
Hlady‐Rispal, M. and Jouison‐Laffitte, E., 2014. Qualitative research methods and
epistemological frameworks: A review of publication trends in entrepreneurship. Journal
of Small Business Management. 52(4). pp.594-614.
Online
What is Entrepreneurship?. 2017. [Online]. Available through:
<http://www.businessnewsdaily.com/2642-entrepreneurship.html>.
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