Entrepreneurship Impact on UK Economy

This assignment delves into the significance and types of entrepreneurship shaping the UK's economic landscape. It explores small and medium enterprises' impacts on both national and local economies while acknowledging potential challenges and learnings from past experiences.

Entrepreneurship and Small
Business Management

Table of Contents
INTRODUCTION...........................................................................................................................3
P 1 Type of Entrepreneurship Ventures and different type of entrepreneurship and it scope3
P 2....................................................................................................................................................4
Difference between small,scalable, large and social entrepreneurship..................................4
M 1...................................................................................................................................................5
D 1....................................................................................................................................................5
P 3....................................................................................................................................................5
Impact of small and medium business on local and national economy ..............................5
P 4....................................................................................................................................................6
Importance of small business and start-up s in growth of social economy............................6
M 2...................................................................................................................................................7
D 2....................................................................................................................................................7
PART 2............................................................................................................................................7
P5 Characteristic and traits of successful entrepreneur..........................................................7
P6 Personality of entrepreneur get affected by mindset and motivation................................8
P7 Process of entrepreneurship affect by person's background of experience.......................9
CONCLUSION................................................................................................................................9
REFERENCE.................................................................................................................................10

INTRODUCTION
Entrepreneurship is procedure of creation and launching of businesses like start-ups or
small business. It supports in generating and creating employment opportunities for people.
Present report describes about type of entrepreneurship, their characteristics and scope of
entrepreneurship (Schaper and et.al 2014). Difference an similarities between private , public an
social enterprises have been discussed. Importance and impact of small business organisation on
local and social economy are also explained. Impact of small companies on regional and
international economy have been illustrated.
P 1 Type of Entrepreneurship Ventures and different type of entrepreneurship and it scope
Entrepreneurship is defined as ability and will to develop a business along with risk
associated in order to gain profit. There are 4 type of entrepreneurship which are as follows:
Small business entrepreneurship: This businesses generally includes consultant , small start-up
shops, travel agents, small saloons and general stores of UK. This type of business can be run by
any one. Entrepreneur of this business usually hire local people and sometime member of their
family to reduce the risk (Eid and El-Gohary, 2013). They define success of their business is
very simple. They just make profits and feed the family of themselves. Funding for these type of
business is collected from friend and family of the entrepreneur.
Scalable Start-up Entrepreneurship: They are not like small business entrepreneur.
Entrepreneur of this type of business with the aim to change the world . Funding is provided to
the by big venture and business entities of UK. They hires experts and bright employees. their
job is to find out business model which are scalable in nature. After finding these model they
focus on getting more funds from venture to expand their business.
Large Company Entrepreneurship: Large enterprises have long term life cycle. They grow
using innovation and invention in their products. Changes are made in their product and
business follows the expectation and need of customers. Rapidly changing customer demand and
needs forces company to make new products.
Social Entrepreneurship: Social entrepreneur's are the one who make products and services in
order to fulfil social needs . They are non profitable business. Social entrepreneurs works with
aims to transform system that can remove poverty from the society. They also work towards
environment challenges that country is facing

Typology an scope of entrepreneurship:
 Entrepreneurship is dynamic and economic thing which includes creation of business
entity for making revenue and wealth.
 It is innovative in nature which require innovation at each step.
 It contains risk and requires patience in an entrepreneur.
P 2
Difference between small,scalable, large and social entrepreneurship
Small Scalable Large Social
This type of
businesses are
conducted privately.
Scalable business are
public in nature.
These are also public
in nature.
Social businesses are
private.
Small business
includes general
stores local are
business, travel
company etc.
This include business
like start up companies
Large business
involves big ventures
and entities.
Social business
includes NGO and non
profitable
organisations.
These businesses can
be run by anyone
(Curran and Storey,
eds., 2016).
These are run by new
comers who want to
run start up.
These are run by
ventures who are large
and have lot of money
to invest.
These are run by
government fro public
welfare.
They do not hire local
people.
They start business in
a group and start
hiring when they get
success
They only hire bright
and expert employees.
They hire local people
to engage in social
welfare programs
(Giaoutzi, Nijkamp
and Storey eds., 2016).

Funds for thee
business comes from
family and friends of
the owner
Funds are taken by big
venture and venture
capitalist.
They us their own
capital to run their
business as they are
big venture.
Funds are given from
government.
It generates very less
revenue and profit.
It generates profit
more than small
businesses.
Large amount of profit
is generated by thee
businesses.
Thy do not generate
any profit .
They are small
enterprise.
They are micro
enterprise
They are medium
enterprise.
They are also small
enterprises.
M 1
I have learned about different type of entrepreneurship ventures and their characteristic.
Scope of entrepreneurship and its typology have also learned. Differences and similarities
between small, scalable, large ,a social entrepreneurship ventures have also acknowledged.
Knowledge regarding scope of entrepreneurship in UK has also got.
D 1
have learn that scope, development and growth of small entrepreneurs business is high.
Organizations are finding various opportunities for selling their products and services to large
number of buyers. Many small businesses are operating in nation and they have vast
opportunities for growing and developing.
P 3
Impact of small and medium business on local and national economy
Small and medium business contribute largely towards the economic growth of UK.
These businesses are major component to increases the economical condition of the country.
Here are some impacts of small and medium enterprises on the local and national economy:
 Small businesses generating employment for the people of UK. Small business have
generated 64% new jobs in the country (Osunsan and et.al, 2015).
 These business contribute towards local economy by bringing innovation in community
in which they have started their business.

 They also provide employment advantage fro the people who are not able to get
employed by big firms.
 Local and national economy of country get affected by small business as they also
provide benefit to large corporations.
 Small company have ability to change according to the climates op economy. The reason
behind this is that they are more consumer oriented.
 These firm are strong enough to handle tough time or economic crises which in turn
make the local economy strong (Abbas and Mohammed, 2017).
 Small organisations requires less revenue than big companies so there is no risk of losing.
 When customers make use of small business they eventually pay money to local
community of the country which result in growth of local and national economy .
 High revenue generated by the SME's pays higher taxes to government. This money is
used by local school and local government offices of UK
 small firm which has started from the local community remains always in that
community which helps in growth of economy of UK
 Globalization of the small and medium organisation are constituting in increasing
international economy of the country also.
 Small firms by generating large revenue pays high amount of taxes to government which
in turn use by government to make lifestyle of local public wealthy .
P 4
Importance of small business and start-up s in growth of social economy
Start up plays vital role in growth if social economy of UK. Small organisation generates
good revenue which constitutes in wealth and prosperity of country. Small business provide
employment opportunity to people of local community. It assist for enhancing their spending
power and it improves their living standard. They spend more amount of money in educating
their family and children. Small business provide platform people to find jobs according to their
skills and talent . Social economic strength of country get increase as the start-ups directly
impact growth of their community. Demand and employment chances for many engineers gets
impacted by small firms (Chitura, Mupemhi., Dube,and Bolongkikit, 2015). These start-ups
create and generate new industries and bring revolutions over time. They assist in enhancing the

lifestyle and living standard of people by giving them lot of opportunities. These companies
provides job to r\women and people of rural area to give financial support to them. People of
minority community gets employment and makes their lifestyle better by enter into economic
mainstream. They provide and distribute their product and services to many local people
including women's and minority community to give them financial assistance.
Hence SME's has big role on social economy growth of UK. There are more than 20
million small companies in UK who are helping and providing employment and jobs to make
socio economic life of people better. These organisation have major force in growing the socio
economical growth UK.
M 2
I have learned about impacts of small and medium enterprises on local economy. Local
economy of UK is greatly impacted by the SME 's. Knowledge regarding benefits of SME; on
socio economic condition of country is also learned. These small business an organisation helpin
providing employment to unemployed people of country ave also acknowledged.
D 2
I have learn that small enterprise provide large support to minority community an rural
are people by improving their lifestyle. These firms plays vital role in growth of social economy
of UK .
PART 2
P5 Characteristic and traits of successful entrepreneur
Unique quality of an individuals define characteristics which is effective and different
from other person. Characteristics and traits are best way to competing all the task in appropriate
manner. There are some characteristic and traits of two successful entrepreneurs Bill gates and
Mark Zuckerberg are as follows:
Motivation and passion: It is a main and important characteristic which helps in attaining best
success. Passion and motivation should be there in an entrepreneurs to become a successful
business men. Motivation helps in taking risk in business organization in order to attain higher
success at marketplace (Storey, 2016). Passion assist in completing the organizational task in
effective manner. Bill gates and Mark Zuckerberg have these qualities which helps them in the
success in the world.

Hard working and dedication: Bill gates and Mark Zuckerberg are hard-working person.
Without hard-work they can not achieve best success in their work environment and in the world.
Risk taking: Both entrepreneurs are risk taking, in organization face more risk give high profits.
Without taking risk in their business process so that they can not able to achieve high profits. So
that to become a successful entrepreneurs and attain success it is important to face and take risk.
Self confidence: It is more important to ensure and confident about their products and service
which are provided to the customers in order to get satisfaction (Schaper and et.al, 2014). Self
confidence increase person qualities and abilities to attain success. In business organization
satisfaction of customers is essential to get best results.
Communication skill: Effective communication skills are more important to the successful
entrepreneurs. With the help of these skills an entrepreneurs easily communicate with customers
and provide useful information which satisfy their needs and demands. Best communication
skills are assist in gain trust.
Strategy: Best strategy helps for a entrepreneurs to complete their work and achieve business
objectives.
Finance: With the help of finance business activities are easily completed. Without fund quality
of business affect negatively. Proper use of resources and fund helps In achieving effective and
best result in appropriate manner.
P6 Personality of entrepreneur get affected by mindset and motivation
Motivation is important to become a successful entrepreneurs. Bill gates and Mark
Zuckerberg are successful entrepreneurs. They both are having positive mind set which assist in
achieving best results and attain success. In absence of positive mind an entrepreneur can not
define new and innovative ideas in their business process. They can not able to complete all the
task and they also fails in taking risk. Positive mindset and motivation helps them to face hard
challenges and taking high risk which convert into higher profitability. These are essential
factors which assist in getting success at market place (Osunsan and et.al, 2015). These factors
are interlinked in business environment so that business owner facing challenges and convert in
higher success. Positive mindset will motivate to business owner to take risk which leads to
success. In success of entrepreneurs family play a big role because they give best knowledge
regarding what is god and what is bad for them. Culture of family will helps in making person
personality in effective way so that they can motivated by the family in order to attain higher

success. In other hand culture is also affect the attitude of the entrepreneurs. All type of factors
are helpful to making personality of successful businessmen. Positive mindset helps in taking
best decision regarding business process. It will also increase skills and workers of the business
All these factors are essential for becoming a successful entrepreneurs in the marketplace.
Motivated businessmen motivate and encourage their employees to perform well in their job so
that they can easily attain best results. In today business activities customers needs and wants are
continuously changed so that entrepreneurs provide them effective services in effective manner
and get higher satisfaction by them.
P7 Process of entrepreneurship affect by person's background of experience
Past experience and personal background of a person is very important which affect
business process and activities of entrepreneurs. If past experience is positive so that it motivate
to the entrepreneurs automagically (Giaoutzi, Nijkamp and Storey, 2016). It assist in attain high
success at marketplace. Past experience not only motivate them but also increase their self
confidence. If an entrepreneurs have negative impression regarding their past activities it can be
demotivated them and they can not define innovative process. But they learn a lot and it affect
them positively in order to taking best decision. Background and past experience of an
individuals is play important role which affect business operations. Background include culture,
family and social circle which affect whole process of business activities in order to attain best
success.
CONCLUSION
Aforementioned report concludes that entrepreneurship has an important part in economy
of UK. There are 4 type of entrepreneurship which are small, scalable, start up and social
entrepreneurship. There are some similarities and difference between them. The small and
medium enterprise impacts a lot economy of the country. It is concluded that the businesses help
a lot in increasing social and local economy. It provides people of particular country opportunity
to make their lifestyle better. It is required that every country should have small and medium
enterprises in order to attain good economic and social condition.

REFERENCE
Books and Journals
Abbas, S. S. and Mohammed, S., 2017. Affect of Insurgency on Operations of Small and
Medium Business Enterprises: A Study on Impact Assessment in Nigeria. Indian Journal of
Applied Research. 6(9).
Chitura, T., Mupemhi, S., Dube, T. and Bolongkikit, J., 2015. Barriers to electronic commerce
adoption in small and medium enterprises: A critical literature review. The Journal of
Internet Banking and Commerce, 2008.
Curran, J. and Storey, D. J. eds., 2016. Small firms in urban and rural locations. Routledge.
Ebert, R. J., Griffin, R. W., Starke, F. A. and Dracopoulos, G., 2014. Business essentials.
Pearson Education Canada.
Eid, R. and El-Gohary, H., 2013. The impact of E-marketing use on small business enterprises'
marketing success. The Service Industries Journal. 33(1). pp.31-50.
Giaoutzi, M., Nijkamp, P. and Storey, D. J. eds., 2016. Small and medium size enterprises and
regional development. Routledge.
Osunsan, O. K. and et.al, 2015. Firm Age and Performance in Kampala, Uganda: A Selection of
Small Business Enterprises. International Journal of Academic Research in Business and
Social Sciences. 1(5). pp.412-422.
Schaper, M. T. and et.al, 2014. Entrepreneurship and small business.
Storey, D. J., 2016. Understanding the small business sector. Routledge.
Online
Small Business UK , 2017. [Online]. Available through: <http://smallbusiness.co.uk/> [Acessed
on 20th May 2017]