Micro and Small Business Impact on the Economy
Added on 2021-02-20
21 Pages4854 Words493 Views
Entrepreneurship and Small Business Management
ContentsINTRODUCTION...........................................................................................................................3TASK 2............................................................................................................................................3Define the concept of small business and evaluate financial and growth of micro and smallbusiness impact on the economy by using relevant data or statistics..........................................3Analyse the needs of SME which include political and economic factors that contributetowards growth and development................................................................................................4Examine the specific role of Small business and analyse contribute towards the nationaleconomy.......................................................................................................................................5Compare the impact of SME for two different UK regions........................................................6Impact of SME for UK which utilising different industries........................................................7Comparison between the impact of SME of two EU countries...................................................8TASK 3............................................................................................................................................91. Discuss about the difference between a manager and entrepreneur........................................92. Identify the characteristics, traits and skills of the successful entrepreneurs and alsodifferentiate them from another enterprise manager.................................................................103. By using Big-5 Model to analyse the Croft-Simon’s entrepreneurial personality reflect theentrepreneurial mind-set and motivation...................................................................................114. Discuss about the correlation between the success and characteristics of entrepreneurialwith the help for Maslow’s Pyramid.........................................................................................125. Various factors that hinder and foster entrepreneurship........................................................146. Critical evaluation of the negative and positive influence of experience and background onentrepreneurship........................................................................................................................15CONCLUSION..............................................................................................................................15REFERENCES..............................................................................................................................16
INTRODUCTIONThe Entrepreneurship and small business is a main part of every business that can offerunique learning experience where people start their own start-up enterprises. Entrepreneurialactivity is important part that can perform action towards the value generation through expansionof products and services. It also identifies technological and motivational aspects in the businessthat can easily handle the functions. This report will discuss about the Small business that evaluate the growth, financialcondition of small, medium, micro and private firm in UK economy. It also analyses the politicaland economic factors that might have stimulate the development of small business. Furthermore,this report will describe the role of small business which analyses that how it will contribute tothe national economy. Moreover, it will discuss about the entrepreneurial characteristics andskills of the entrepreneur requires for achieving goals and objectives. At last, it will evaluate theexperience and background of entrepreneur’s influence in both positive or negative ways. TASK 2 Define the concept of small business and evaluate financial and growth of micro and smallbusiness impact on the economy by using relevant data or statistics.Small business is defined as an independently owned which operates the organization but it haslimited size and their revenue depends on the condition of industry. SME owner performed theoperations to control overall functionality. Generally, it employs fewer than 200 employees andhas revenues less than $27 Million (Burns and Dewhurst, 2016). The small business can be identified by structure, size and its overall revenue. There arelarge number of employees working in the SME but it can fall the under scope of independententities which are mostly dominates the other business operational area or field. As per analysis,it has been found that SME which comprises of worker and considered 250 Small business inUK. According to data and statistics, it has been identified that Small business contribution in theUK economy and $5.4 million working. In 2018, Small business accounted for 99% of private sector for 2018 and 99% are basedon the SME and medium scale enterprises (Burns, 2016). In this way, it has to be calculated thetotal employment of small business which was approximately $16.3 Million. It also identifiedtwo different types of employing and non- employee business which considered $1.4 to $4.3
Million. The entire population of enterprise including the legal forms such as Soleproprietorship, ordinary enterprises and other organization. Figure 1 Analysis Of SME Contribution To Employment(Source: SME contribution to the employment in UK. 2018)According to graph, it has been summaised that Samall business contribute towards themanufactiuring sector related the employment opportunities. It has been increase the totalemployment by SME in the manufacture sector from 2000 to 2006 an reprsenting that it hasincreaed 18 % over time intervals. It emphasises that SME positive impact on the economy bygenerating employement because large business has limited demands of new employees (Voleryand Mazzarol, 2015). It does mean for cutting the job and recuced the productiviuty of largebusiness. Many SME exist to serve the service as per demand of customer that help for improvingthe quality of good and servuces. Small business is important which specialsed in theintermeduate good and produce in global marketplace. Analyse the needs of SME which include political and economic factors that contribute towardsgrowth and development. The success of SME depends on the economy of nation where business has launched inglobal marketplace. It can be defined the number of SME in the population at time that refer tooverall percentage of existing enterprises. The low interest rate must be facilities to access thecapital but it has required the suitable resources. For Example- In south Africa, it is higher primeinterest rate of 15% with limits both capital amount and consumption rate.
Political FactorThe political environment of UK to which the Small business will impact on thesustainability and growth. In UK, Government plays important role for planning the smallenterprises and position of political environment influence the growth rate of business. Politicalparties always influence the practices of enterprise which allows to enter into the specificarrangement regarding allowances, acquisition and out sourcing between the SME all over theworld. Economic FactorIt refers to the state of region and country economy that significantly impact on the Smallbusiness structure, size and profitability. It may identify the direction of economic system whereSME will operate in properly (Ratten, 2014). In this way, the business survival must be dependedon the economic culture and environment. It influences the enterprises that increase ability toobtain all resources, product and services so that it helps for SME to improve the quality anddetermine the better opportunities for growth and development. Examine the specific role of Small business and analyse contribute towards the nationaleconomy. Small businesses are the important part of country economy that can represent as vitalsource of growth and development. It has performed the different role that impact on theeconomy. Job Creation and EmploymentSmall business plays an important role in the national economies where it makes up 90 % ofbusiness which accounts for 70% job opportunities. It also shares the trends where enterpriseoffers the variety of product and service at low price. In retail sector, SME enterprises willincrease the employment and higher the establishment of business because it has limited sizethan other manufacturing (Zaridis and Mousiolis, 2014). For Example- The retail enterprise,restaurants and hotels were dominated by the small business, the establishment of SME account90 % of employment opportunities. It is not Surprising where the SME plays important role in the job creation where it alsoexpressed in the relationship with the small or large establishments. The rate of job creation rateis higher.
Contribution towards innovationIt has been analyzed that innovative concept and ideas are developed within the small businessenterprises because they are planning the produce an effective solution in order to improve thequality of product and services (Bogdanova and et.al., 2016). It also uses for launching a newproduct in global marketplace because the demand of consumers can be changing according tothe trends. In this way, Small business have an opportunity to increase the productivity andprofitability in global world. In this way, it directly contribution towards the economy of nations.Employment PracticesSmall enterprise can hire the less experienced people and candidates which help fornational economy because it helps to secure the job with no experience and also follows theminimum conditions. SME provide the training to new employee and also work on groomingindividual as per the experience.Compare the impact of SME for two different UK regions. According to survey, it has been analysed that there are 5.7 million small businessestablished in UK or different regions. It can be defined as enterprise that have 300 employeeswhich accounted for 60% private jobs. Unfortunately, London is the highest ratio of Small business that can identify bycomparing between different residential region of UK. As per survey, it has been found that thereare three different regions of UK such as south east and south west. West Midland is the fastest growing region which increases rate of profit 9% and changeon every year. Northern Ireland 6%, Scotland 7% are producing the highest rate other thanLondon. It always helps for UK to increase annual growth rate.
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