The Role of Entrepreneurship Ventures in UK Economy

This report discusses the importance of entrepreneurship ventures in the UK economy, highlighting their contribution to economic growth and innovation. It identifies various types of entrepreneurial ventures, including small and medium-sized enterprises (SMEs), which play a crucial role in contributing to the UK's post-Brexit economy. The report also examines the characteristics and skills of successful entrepreneurs, providing insights into what motivates them to achieve their dreams.

Entrepreneurship and Small Business
Management

Table of Contents
INTRODUCTION...........................................................................................................................1
P.1. Examining the scope, development and growth of various entrepreneurial ventures ........1
P.2. Differences and similarities between different types of entrepreneurial ventures...............2
P.3. Critically examining the impact of small businesses on the UK economy with statistical
data..............................................................................................................................................4
P.4. Explaining The importance of small businesses and start-ups in growth of social
economy......................................................................................................................................6
P.5, P.6, P.7.Enclosed in PPT.....................................................................................................6
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................8

INTRODUCTION
Entrepreneurship can be defines as the concepts of developing and managing a business
venture in order to gain profit by taking various risks in the company. It is the willingness of a
person to start a new business. Entrepreneurship has played a vital role in economic development
of any country across the globe. An entrepreneur is a person who has an idea to start a new
business is potential and willing to work for himself. The present report will assist in providing a
deeper insight about different aspects on entrepreneurship. It will identify different types of
entrepreneurial ventures. Further, it will highlight the differences and similarities that are posses
by different ventures. Moreover, report will also assist in highlight the impact of the level Small
and medium business are contributing to the UK economy. The importance of this SMEs in UK
economy post-Brexit will also be discussed. Furthermore, the report will highlight the
characteristics and skills that has motivated the famous and successful entrepreneur of Britain. At
last, report will illustrate the ways in which background and experience of this entrepreneur has
affected them.
P.1. Examining the scope, development and growth of various entrepreneurial ventures .
An entrepreneur can be defined as an individual who vision to start a business on his own
and runs with limited resources and planning. As he is the one who has created the idea of such
business, he will be accountable for the risk and reweds of the business (Drucker, 2014). Such
entrepreneur venture usually target high returns from the business with equally high level of
uncertainty. There are various types of entrepreneurial venture, which are as follows:
Small Business entrepreneurship: In this type of business venture, privately owned
corporation, sole proprietorship and partnership firms are included. These business are
characterised by their small number of employees started with less resources and funds. These
business includes, grocery stores, hairdressers, travel agents. The usually hires local employees
or family. They are barely any profit, they earn to feed and run their family and living. The main
source of funds for their operations are their personal savings and bank loans.
Scalable Start-up entrepreneurship: this refers to the business which has been start-up
with a vision of having a business which will change the world (Kirzner, 2015). The
entrepreneur starts his business which completely anew idea (Examples of a Scalable Business
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Model , 2019). They attract the investors from the market to fund their business. They hire the
employees as creative and innovative a they are with proper skills and knowledge. Scalable
Start-up involves the model which will help in responding to the market needs and the problems
effectively.
Large businesses: these are the organisation that have long life-cycle. These businesses
are involves in the operation of selling products and services. They have grown through regular
innovation in their products and services (Austin, Stevenson and Wei-Skillern, 2012). They
adopted different marketing strategies in order to remain competitive and keeps on expanding
their business operations. As they have sustained position in market, they raises their funds from
their retained profit, issues of shares and debenture in financial market. They have usually more
than thousands of employees
Social entrepreneurship: This are the firms usually focuses on creating the product and
services which can create value to the society, that can assist in solving social needs and can
respond to their problems (Kuratko, 2016). There main goals of starting a business is to serve the
society and make the world a better place to live. They do not aim to create wealth or to take the
market share. The non-profit organisation, or hybrid.
P.2. Differences and similarities between different types of entrepreneurial ventures.
There are differences among various entrepreneurial venture are as follows:
Basis of
difference
Large business Small business Scalable start-up Social firm
Meaning It is well established
firm and is
registered by the
government
This firm are
privately owned and
operated firm which
works in order to
generate more profit.
This type of firms
start with an
innovative and
creative idea that
focuses on the
creation of changes
occurs with every
stage.
This business are the
one which starts in
order to create value
to the society and
operates in order to
make the world a
better place (Kelley,
Singer and
Herrington, 2012).
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Aim Maximizing the
sales and generating
more profit for the
firm for the owner
in order to attain the
goals and objectives
of the business.
The main aim of the
person is to create
and ficus on the
long-term growth
and maximization of
profit (Parker,
2018). They aim to
enhance their sales
revenue through
sustainable growth
in market.
Main aim of the
entrepreneur is to
generate more
wealth or profit
margin for the
entrepreneur and the
investors.
These firms work for
the well being of
society and human
kind in a sustainable
way.
Number of
employees
As per the law, the
number of
employees in large
businesses are
around 5000 .
They are usually
operated the
business by them
selves, or hire the
employees from
local market.
They start the new
business b
themselves and fire
the employees with
best skills and
knowledge
(Driffield and
Karoglou, 2019).
The number of
employees in social
firms are some
volunteers.
Source of
funds
In large business
units, they raise
their funds through
their revenue, issues
of shares, retained
earning and
investors.
Such small
businesses usually
generate their funds
from their personal
savings. Funds from
friends and family.
The entrepreneur of
start-up attract the
inventors from the
market with their
creative ideas,
through angel
investors and
friends, family etc.
The entrepreneur of
social firms maintain
their source of funds
from charity,
government and
through donations.
Kind of
business
It includes large
number of
corporation which
They are the retail
stores owner, small
construction firms
This firms includes
the IT, retails
industry or group of
Unlike other business,
this are the firm that
includes in helping the
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includes maximising
the sales of product
or services
etc. companies, they
includes in scalable
star up companies.
society and the
peoples at the time
when crisis strikes,
during any global
issues, or the problem
that has been arises in
society.
Similarities between these firms: apart from such differences in several aspects, these
firms possesses some similarities in their operations also. It can be said that, all these businesses
make strategies in order too run their business, which includes marketing strategies, financial
budgets in order to control the expenses. It is the common aspects between all these firms which
will assist in enhancing their profit in order to achieve financial goals. All these business venture
makes plan in order to expand their businesses in their particular areas and achievable
competitive advantage in their respective industries. All these firms look for the way in order to
achieve their desire level of growth and success.
It can be said that, all these entrepreneurial venture are essential in order to develop the
borough, they are important in order to enhance the economy and develop the employment
opportunities in borough. However, it can be critique that the scalable start-up and small business
are the one who starts up with the grass hood levels, where the large businesses and non-profit
are operating at the national level.
P.3. Critically examining the impact of small businesses on the UK economy with statistical
data.
Impact of small business on UK economy:
As per the current scenario of UK economy, Brexit has affect the fundamental rulebook
of governing the operations of business in UK. Brexit has clearly enlarged the uncertainty which
can leads to damage then consequences for the economy activity. It is clearly identical that, that
this uncertain economy will affect the business operations of large-scale industry that are
depends on the other countries of EU in various aspects (The importance of small businesses in
the UK economy , 2019). It can be said that the small business and the micro-enterprises has been
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responsible for the majority of the GDP creation in UK. These SMEs are considered as the
backbone of UK economy which assist in driving growth, opening new market and create job
opportunities. Thus, it plays a vital role in contributing to the UK economy, especially
considered as the current scenario. As per the statistics, the micro business in UK are accounted
for 33% of employment. Total employment of medium enterprises are 16.1 million. This
accounted for 60% of private sector businesses in UK (Colantone and Stanig, 2018). It can also
be said that this SMEs ha\s high turnover rate from the manufacturing to retail sectors.
However, it can be critique, that the uncertainty of Brexit will also leads to affect the
SME's. As per the chart above, larger SMEs are more concerned that Brexit will act as an
obstacle to their business activities. Around a quarter of larger SMEs will be affected by Brexit
as a major obstacle for their business. This could be because of the larger SME's are depended on
international trading. It can be said that, in UK SME's are responsible for 1.9 GBP trillion. This
SME's has accounted for sincereness employment opportunities which assist in reducing poverty
and increasing in per capita income. Along with this, small and micro enterprises place emphasis
on producing more innovative product or services to attract and increase more
customers(Dennison and Geddes, 2018). Thus, it leads to increase the people's living standard as
well as creating an opportunity to enhance exports of products. From all this aspects, it can be
said that SMEs place a positive impact on growth of UK economy.
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It can be recommended that the government should make policies in order to reduce the
imports and encourages export In order to increase the SME's in UK. The government should
encourage the small business so that it enhances the domestic market. It will result the country to
be less dependent on the export products.
P.4. Explaining The importance of small businesses and start-ups in growth of social economy.
In UK, SMEs assist in comprises of 99.9% of all business in the UK. They have a critical
role to play in order to balance the company of country in order to tackle with the challenge
which could be arises because of the impact of Brexit, which is large trade deficit, poor or slow
productivity growth and low level of SME innovation (Pappas, 2019). However, it can be said
that the UK's wealth which is comprised from small and medium size enterprises will be held
charge for maintaining the economic balance in the unknown uncertainties. SMEs can at least
serve at the consumer level which assist in creating GDO for economy.
As per the current scenario is considered, the SMEs of UK will assist in contributing the
economic growth and development post-Brexit from several aspects. It could be maintaining job
opportunities, sales growth, innovation, import and export etc (The UK’s post-Brexit economy
hinges on small businesses and innovation , 2019). Brexit will affect the economy and businesses
of UK in negative manner, there are different rules and regulation that will be imposed on UK
which will contribute to hamper the growth and success. As one third of the UK business uses
EU suppliers, will now look for other opportunities that will affect the business of UK including
SMEs. However, it can be said that the growth opportunities post-Brexit for SMEs are more in
compare to other entities. UK's main employer's group, estimates in strengthening the supply
chain that could assist in adding 30 billion pounds to the UK economy and will create more than
500000 job by 2025.
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P.5 & P.6.
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14

15

P.7.
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17

18

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CONCLUSION
By summing up the above report, it can be concluded that entrepreneurship ventures
plays a vital role in the success and growth of any country. An entrepreneur is person who
willing to start a business, and perform all the activities for starting those business. It can be
analysed from report, that profit maximization is one of the main motive behind starting the new
entrepreneur ventures. The present report has identified that there are different types of
entrepreneurial ventures that are differ from each other from various aspects and are similar to
each other through various operations. It can be analysed from the report that small and medium
size enterprises plays a huge role in contributing to UK economy. Further, it can also be said that
these SMEs will continue to contributing post-Brexit in UK economy. It has also been identified
the several characteristics and skills of known entrepreneur and their background or experiences
which has motivate them to achieve their dreams.
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REFERENCES
Books and Journals
Austin, J., Stevenson, H. and Wei-Skillern, J., 2012. Social and commercial entrepreneurship:
same, different, or both?. Revista de Administração. 47(3). pp.370-384.
Colantone, I. and Stanig, P., 2018. Global competition and Brexit. American political science
review. 112(2). pp.201-218.
Dennison, J. and Geddes, A., 2018. Brexit and the perils of ‘Europeanised’migration. Journal of
European public policy. 25(8). pp.1137-1153.
Driffield, N. and Karoglou, M., 2019. Brexit and Foreign Investment in the UK. Journal of the
Royal Statistical Society: Series A (Statistics in Society). 182(2). pp.559-582.
Drucker, P., 2014. Innovation and entrepreneurship. Routledge.
Kelley, D. J., Singer, S. and Herrington, M., 2012. Global entrepreneurship monitor 2011 global
report. Global Entrepreneurship Research Association, London Business School.
Kirzner, I. M., 2015. Competition and entrepreneurship. University of Chicago press.
Kuratko, D. F., 2016. Entrepreneurship: Theory, process, and practice. Cengage Learning.
Pappas, N., 2019. UK outbound travel and Brexit complexity. Tourism Management. 72. pp.12-
22.
Parker, S. C., 2018. The economics of entrepreneurship. Cambridge University Press.
Online
Examples of a Scalable Business Model . 2019 [ONLINE] Available Through:
<https://smallbusiness.chron.com/examples-scalable-business-model-25576.html>.
The importance of small businesses in the UK economy . 2019 [ONLINE] Available Through:
<https://smallbusiness.co.uk/the-importance-of-small-businesses-in-the-uk-economy-2492626/>
The UK’s post-Brexit economy hinges on small businesses and innovation . 2019
<https://theconversation.com/the-uks-post-brexit-economy-hinges-on-small-businesses-and-
innovation-80649>.
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