Impact of Small and Micro Enterprises on UK Economy

The assignment explores the importance of small businesses and business start-ups in enhancing social economy growth. It highlights factors such as local hiring, turnover, diversity, and innovation that contribute to the success of small enterprises and their positive impact on the UK economy.

Different types of entrepreneurial ventures
Entrepreneur refers to a process which encourage a
person in developing a new business venture so that
they can serve the society in order to fulfil need and
demand of customers in proper and effective way.
Moreover, when a person starts a new business they
have to conduct various things such as such as
analysis market, develop strategies, products and
services, analysis capital and so on (El Ebrashi,
2013). Along with this they also face various risk
which are related to dissatisfaction of customers,
financial risk and so on. There are diverse kind of
entrepreneur in a marketplace, some major of them
are explain below: -
Type of Entrepreneurial venture- Large enterprises: There type of venture
are based on large scale and they required
huge amount of fund so that they can offer
products and services accordingly. They
generally provide expensive and luxury
products for fulfilling need as well as
requirement of customers in proper way.
Moreover, they design products according
to latest trends of marketplace. Example of
large scale organisation are Unilever,
Marks and Spencer, Tesco, Burberry and
so on.
 Small enterprise: There type of venture
are based on small level and it required
less amount of capital in respect of large
scale enterprise. These entrepreneurs are
generally manufacture a products and
services with new as well as innovative
trends. Such as cafe, restaurants and so on.
For example- Crew Clothing Company
Comparison: -
o Products and services: Products and
services offer by Burberry are
clothing, accessories, perfumes and
cosmetics whereas Crew clothing
company offer casual clothing for
both men as well as women.
o Area Served: Burberry serve their
product range at international level so
their customer's base is high whereas
Crew clothing company offer their
products at national level i.e. United
Kingdom due to which their
customer's base is low as compare to
Burberry.
 Social enterprise: These type of enterprise
conducts their business operation as well
as function in order to satisfy need and
ENTREPRENEURSHIP AND SMALL BUSINESS MANAGEMENT

demand of customers so that they can
improve their standard of living.
Kind of venture entrepreneurial typology- Serial entrepreneur: There type of
entrepreneur are very creative and also
ready to take risk as well as face
challenges (Griffiths, Gundry and Kickul,
2013). They generally offer their products
and services in all areas so that they can
fulfil need as well as requirement of
customers properly. Male Entrepreneur: These entrepreneur
design products and services according to
requirement and demand of customers.
Along with this they are also creative and
innovative which help them in gaining
high profitability ratio and market shares.
Some successful male entrepreneur is like
Bill Gates, Mark Zuckerberg and so on. Life Style Entrepreneur: These
entrepreneurs are more focus on offering
products and services according to new
trends which fulfil requirement of
customers in effective and appropriate
manner.
 Female Entrepreneur: It refers to those
entrepreneurs which are more innovate
and creative in comparison to others.
Along with this their main aim is to earn
high profitability ratio as well as market
shares (Humphrey, 2013). Some of the
famous female entrepreneur are Emma
Kane who is a chief executive officer of
Red Leaf Communication company.
Similarities and differences between
entrepreneurial ventures
Each and every entrepreneurial venture is different
and similarity because their motive as well as aim is
diverse. Some of the major difference and
similarity of some entrepreneurial ventures are
explain below:
Difference: -
Large scale and Small Scale Entrepreneurial
Ventures
Large Entrepreneurial Ventures:
 Meaning: These entrepreneurial venture is
developed on large scale and they required
huge amount of money so that they can
operate their function as well as operations
properly.
 Decision making: Here decision making
is little bit time taking because they follow
organisational hierarchy.
 Process: Process follow by respective
venture if formal type.
Small Entrepreneurial Ventures:
 Meaning: It is a venture which required
less amount of capital as comparison to
large scale entrepreneurship.
 Decision making: In this entrepreneurship
decision is taken by owner of a company.
 Process: Here procedure is informal in
nature.
Social and Scalable Entrepreneurial Venture
Social Entrepreneurial Venture
 Definition: The main aim of this type of
venture is to serve the society.
 Aim: Its main aim is to serve products or
services for society welfare.
Scalable Entrepreneurial Venture
 Definition: The objective of this company
is to sustain in market for a long time.
 Aim: Its aim is to bring unique as well as
innovative ideas for the business.
Similarities:
Large and small business
 Aim of both business is to earn profit.
 Main focus of these ventures are to grab
attention of customer and investors.
Social and scalable business
 Both business is based on creativity and
innovation.
 They both want to sustain in marketplace
for a long time
Interpret and assess relevant data and statistics
Entrepreneur is of various type which impact on an
economy in various ways. In United Kingdom
economy is mainly impacted by micro and small
business ventures. Micro enterprise is those venture
which have generally 5 or less staffs at a particular
workplace. Along with this small venture are
independently owned where very less employees

are working in order to gain high profitability ratio
and market shares. These both type of venture help
economy of United Kingdom in attaining their
objective and goal. Some major benefit is
explaining below: -
 Generate employment opportunities:
Through development of enterprise
company able to generate employment
opportunities for local, national and
international peoples. This will also help
these candidates in enhancing their
standard of living. For this good motive
government of United Kingdom help small
as well as micro ventures.
 Increase per capita income: This refers
to the income of employees which they
earn within specific economy nation. So
when there is more business venture then
more peoples get employed which directly
help in enhancing per capita income of
economy.
Impact of small and micro enterprise on
economy of United Kingdom can be measured as
well as described by using charts or graphs that is
shown below:
From the above graph it can be analyzed
that economy of UK is enhancing itself along with
the evolution of small and medium business
ventures. It can be analysis through graph that
economy is growing in positive manner. As shown
in chart from year 2008 to 2012 economy is
fluctuating. But from 2012 to 2018, it is enhancing
continuously that is very beneficial for business
ventures as well as company.
Importance of small businesses and business
start-ups
As per the present scenario, the environment of
business is very competitive and high in the
demand in which small business or start-up want to
enhance their growth in an effective manner in
order to grow social economy. For the better
improvement in the economies all entrepreneur is
focusing on their systems and factors by which they
can make their economy very effective in a proper
way. There are few factors to enhance social
economy growth, those are listed below:
Local hiring: In order to increase social
economy growth, small businesses manage and
operate their function locally in order to hiring local
members of the economy. With the help of this they
can enhance people growth as well as business
growth. This process maximizes the opportunities
of people at the local workplace in a unique way.
Therefore, it is more and more effective technique
which is helpful for small business in order to
maximize economy growth every day.
Turnover: It is the very effective strategy
for small business and new start-ups because it
gives the chance to gain opportunities also helpful
in order to make plan for the future development of
social economies in an effective way. With the help
of this companies can use their resources and
evaluate their fund effectively. Apart from this this
can be said that small businesses are depends upon
the country's economy which make these business
effective in front of the people. On the other side
entrepreneurs have friendly behavior with other
people in order to satisfy them. Through this
business also can achieve their goals and objectives
in order to developing the social economies in an
appropriate manner.
Diversity: It is the effective and essential
factor which enhance the growth of social economy
in a systematic manner. In reference to the small
business units and startup they have lot of
flexibility in the business so it can be beginning by
the any individual in a proper way. With the help of
this diversity different culture, corporations and
functions individual can develop their growth
within the specific time. That's why this is the
easiest concept in order to enhance social economy
growth in a proper way.
Innovation: This is is the important factor
of every business. With the help of this an
entrepreneur can apply innovative ideas on their
business in order to influence people in an effective
manner. With the help of innovative ideas
employees can get attracted and this process can
increase the social economy growth in an effective
manner.
Online

SMB, SME, and Large Enterprise: Why Your
Business Size Classification Matters. 2019.
[Online]. Available through:<
http://www.digium.com/blog/2016/02/18/smb-sme-
large-enterprise-size-business-matters/>.
Burberry perfumes and colognes. 2019.
[Online]. Available through:<
https://www.fragrantica.com/designers/Burberry.ht
ml>.
Crew clothing. 2019. [Online]. Available
through:<
https://www.weanswer.co.uk/client/crew-clothing/>
.