Entrepreneurship and Small Business Management

This report explores the impact of micro and small businesses on the UK economy, the importance of small business setups, and the differences between small, medium, and large business houses. It discusses how small businesses contribute to economic growth and provide employment opportunities in the United Kingdom.

Entrepreneurship and Small
Business Management
Table of Contents

INTRODUCTION.................................................................................................................................3
MAIN BODY........................................................................................................................................3
Micro and small businesses impact on UK economy.........................................................................3
Importance of small businesses and small business set ups...............................................................4
Difference in small, medium and large business houses....................................................................4
Small, medium and large businesses make economy.........................................................................5
CONCLUSION.....................................................................................................................................5
REFERENCES......................................................................................................................................6
INTRODUCTION
Entrepreneurship is all about converting an idea into a successful business model. In
this report projection will be done in favour of micro and small business houses as if how

they improved economic growth of United Kingdom. Impacts put by small business houses in
the UK economic growth will also understand in this report. Furthermore, understanding will
be established in this report in respect to differences between small, medium and large scale
businesses established in Unite Kingdom. Impact of small scale businesses at different level
of economy will also be understood in this report.
MAIN BODY
Micro and small businesses impact on UK economy
On the basis of the information available about the small business set ups based in
United Kingdom. On the basis of the information available 4.4 million business houses are
associated with the different segment of service sector. Majority of service sector
organisation based in UK are belong to small scale enterprises as majority of businesses in
this context are belongs to technical professionals and different others. Micro and small
businesses have changed the dimensions of UK economy not in respect to turnover along
with them also serve employment opportunity to graduates both young and experienced. As
per the figures it can be projected that retail sector consist up the total sales turnover of 34%
cater 18% employment opportunity, transportation consist up 5% turnover cater to 6%
employment opportunity and so as other small businesses in UK contribute in the overall
growth of the economy along with generate employment opportunity in United Kingdom (Li
and et.al., 2016). Among the different industries service industry which caters approximately
99% of small scale businesses serve the turnover 79% of the total and cater employment
opportunity to 71% professionals and graduates based in United Kingdom. Small businesses
not only contribute in name of sales turnover but along with they also cater the employment
opportunity in United Kingdom. Employment creation is a big area of economic growth of
the country. In United Kingdom majority of business houses are either belong to small
businesses or micro businesses which provide an immense support to the government in form
of economic growth of country’s gross domestic products along with serve the employment
opportunity to all the young and experienced professionals situated in United Kingdom.
Importance of small businesses and small business set ups
Small businesses are the back bone of the United Kingdom economy as
approximately majority of the business houses situated in United Kingdom are come under
the guidance of small scale enterprises. They play a huge role in boosting the economic

growth of United Kingdom in form of contribution in the country’s gross domestic product
and also along with creation of employment opportunity in UK. Majority of employments
allotted to graduates both young and experienced ar served by only these small scale business
houses. Employment creation is the only remedy available for the government to cure the
unemployment in country. Small business set ups play a dominating role in dealing with the
unemployment issue of government and provide a huge growth opportunity to all the
graduates out there in United Kingdom. Social economy the concept cover up the people
development as well along with creation of economic growth in country (Hassan and et.al.,
2017). The success small business houses create in United Kingdom further drive them to
contribute in the growth and development of society. They conduct different social
responsibility operation which transform into socio economic growth of United Kingdom.
Difference in small, medium and large business houses
Small business
Small business are all such business houses that carry a sales turnover of not more
than £ 6.5 million and serve employment opportunity to not more than 50 peoples (Agnese,
Rizzo and Vento, 2018). Small business houses are the back bone of the United Kingdom
economic growth and development. Small business houses are the majority of the business
organisation in United Kingdom and there growth plays a crucial role in the economic
development of United Kingdom market.
Medium business
All such business houses that consist up with the sales turnover of not more than £
12.9 million and serve employment opportunity to not more than 250 peoples. Medium size
business houses generate immense employment creation as they get to employ approximately
250 people in the organisation.
Large business
All such business houses that serve the employment opportunity to more than 250
peoples. If the organisation serve employment to more than 250 peoples it by default come
under the parameter of large business house (Akash, 2020).
The above mentioned points are the key difference between small, medium and large
businesses established in United Kingdom. All the three form of businesses contribute in the

overall growth and development of United Kingdom not only in respect to boosting the
economic growth but along with creation of employment opportunity from the business
operations they undertake.
Small, medium and large businesses make economy
The information and figures available over the contribution made by small, medium
and large business houses it can be projected that in United Kingdom service sector consist
up the turnover of 71% and retail sector 34% and so as other businesses. The contribution
done by all these business has been immense in the overall economic growth of United
Kingdom. Majority of service sector are based on small size organisation that depict that in
United Kingdom the business environment and government support to small businesses are
impressive which allowed them to contribute in the overall economic growth of United
Kingdom (Osborn and Simpson, 2018). Over the period of time these business houses not
only contributed in form of economic growth along with they serve the employment
opportunity to many young and experienced professionals. Unemployment play devil role in
the country’s economic performance and these businesses could support the government in
both the respect. Small, medium and large businesses could serve the product at regional,
local and international level. Many companies of United Kingdom like Marks and Spencer
and much other work at international level.
CONCLUSION
Small businesses consist up approximately 99% of the overall businesses in United
Kingdom. They contribute not only in the economic growth of country bout along with they
serve employment opportunity to peoples in country.

REFERENCES
Books and Journals
Agnese, P., Rizzo, M. and Vento, G. A., 2018. SMEs finance and bankruptcies: The role of
credit guarantee schemes in the UK. Journal of Applied Finance and Banking. 8(3).
pp.1-16.
Akash, S., 2020, September. Small and Medium Enterprises (SMEs) using E-brands and
Multiple E-Marketing Channels to Dominate Global Ecommerce Industry. In 5.
International EMI Entrepreneurship and Social Sciences Congress PROCEEDINGS
E-BOOK (p. 58).
Hassan, H. and et.al., 2017. Factors Influencing Cloud Computing Adoption in Small
Medium Enterprises. Journal of Information and Communication Technology. 16(1).
pp.21-41.
Li, W. and et.al., 2016. e-Leadership through strategic alignment: An empirical study of
small-and medium-sized enterprises in the digital age. Journal of Information
Technology. 31(2). pp.185-206.
Osborn, E. and Simpson, A., 2018. Risk and the small-scale cyber security decision making
dialogue—a UK case study. The Computer Journal. 61(4). pp.472-495.

Online
Small, medium and large business contribution in UK economy, 2020. [Online]. Available
Through:
<https://esrc.ukri.org/news-events-and-publications/evidence-briefings/boosting-uk-
productivity-with-sme-growth/#:~:text=Contributing%2047%20per%20cent%20of,expand
%20business%20and%20increase%20impact. >.