Impact of Brexit on UK Small Businesses

The assignment examines the impact of Brexit on UK small businesses. It analyzes various sources, including expert opinions from The Conversation article titled 'Brexit's Impact on Small Businesses: The Experts May Be Spot On After All', and statistical data provided by Merchantsavvy regarding UK SME Data, Stats & Charts. The goal is to understand how Brexit has affected this crucial sector of the British economy.

Entrepreneurship
and
Small Business

Table of Contents
INTRODUCTION ...........................................................................................................................................3
TASK 1..........................................................................................................................................................3
P1. Examine different types of entrepreneurial ventures and explain how they relate to the typology
of entrepreneurship................................................................................................................................3
P2 Explore the similarities and differences between entrepreneurial ventures......................................5
TASK 2..........................................................................................................................................................8
P3 Interpret and assess relevant data and statistics to illustrate how micro and small businesses
impact on the economy...........................................................................................................................8
P4 Explain the importance of small businesses and business start-ups to the growth of the social
economy................................................................................................................................................10
TASK 3........................................................................................................................................................11
P5 Determine the characteristic traits and skills of successful entrepreneurs that differentiate them
from other business managers..............................................................................................................11
P6 Assess how aspects of the entrepreneurial personality reflect entrepreneurial motivation and
mindset..................................................................................................................................................13
TASK 4........................................................................................................................................................14
P7 Examine, using relevant examples, how background and experience can hinder or foster
entrepreneurship...................................................................................................................................14
CONCLUSION.............................................................................................................................................16
REFRENCES................................................................................................................................................17

INTRODUCTION
Entrepreneurship refers to a way in order to set up a business unit through analyzing and
evaluating different risks which are related to startup a new venture such as financial as well as
managerial risk. Entrepreneurial ventures is started by an entrepreneur who have ability to take
risk in order to set up own business (Chi, Tansuhaj and Sun, 2016). Along with this it may have
various ownership structures and an entrepreneur must need to have some specific skills and
ability which help them in development and management of a business unit properly. Moreover,
experience as well as personal background of an individual may also have diverse impact on
entrepreneurship which may be promote a business unit. Skills and ability of an entrepreneur can
be god gifted by birth or it can be enhanced by attending classes or sessions. Topics covered in
this report are various types of entrepreneurial ventures and it impact on country economy. Apart
from this, it include skills and mindset which are required in order to set up a business unit as
well as it will also include factors such as experience and personal background that may impact
on a start-up of business unit.
TASK 1
P1. Examine different types of entrepreneurial ventures and explain how they relate to the
typology of entrepreneurship
Entrepreneurial venture refers to a business unit which is established by an individual in
order to fulfill need and demand of their target audiences. Along with this, an entrepreneurship
venture can be established in order to serve society. There is various type of entrepreneurial
venture which are mentioned below:-
 Small business entrepreneurship: It refers to that startup businesses unit which can be
only run by owners and in this number of employees are very low such as approx 5 staffs.
Along with this, in this type of venture revenue or profit generation is not too high as well
as these ventures are continuously focuses on attracting more and more customers due to
which they design and development its products or services accordingly (DAILY, KIEFF
and WILMARTH , 2014). Respective type of business unit can be established with

members of family or with friends as partnership. Moreover this type of business unit
must conduct analysis and then develop as per the demand of customers.
 Scalable startup entrepreneurship: It refers to those business units which starts its
business through innovative and creative ideas that mainly focus on serving innovative
products or services to its customers or potential audiences from beginning. Basically
entrepreneur who are going to established this type of venture believe that their idea may
change the world, due to which start arranging capital from various investors in order to
start their activities or operations. This type of business units are mainly based on their
innovative ideas which help them, in attracting customers appropriately and effectively.
 Large company entrepreneurship: It refers to those type of entrepreneurial business
unit which have limited life cycle as well as they are mainly focus on serving new
products or services to its customers in order to sustain for a long time at a particular
marketplace (Davidsson, 2015). While operating or conducting activities in respective
industry an organization may face some difficulties such as demand of customers,
legalizations, policies and many more things are changing on continuous basis due to
which owner or entrepreneur of this business has to develop strategies and polices
accordingly in order to fulfill need as well as demand of customers in effective way that
leads to enhancement in profits and market shares.
 Social entrepreneurship: This refers to type of entrepreneurial venture which mainly
focus on solving problems or issues of potential customers by offering them products or
services accordingly that fulfill demand and need. Along with this their main aim is to
develop a better world for people or customers. Social entrepreneurship venture can be in
various forms such as for profit motive, non-profit motive or hybrid.
 Serial Entrepreneurial venture: It refers to those entrepreneurial venture who always
come up with new and attractive idea for starting a new business. They are generally
opposite of general or normal entrepreneurial venture. The owner of these type of
entrepreneur generally operate more then one business.

 Owner Manager venture: It is describe as those venture which is small and medium in
size. They are generally too busy in focusing on operating business as well as they also
occupy their more time in developing plans for further business.
Typology of entrepreneurship:
 Survival firm: It refers to those topology of firm whose main main is to survive in a
marketplace by offering product and services according to their potential customers. They
want to earn profit and survey at market place for a long time.
 Lifestyle firm: The main aim of these type of topology is to offer product and service
according to customer's demand and need. They also able develop their products
according to new trends.
How they relate to the Typology of entrepreneurship:
Different
entrepreneurial
ventures as defined
by a variety of
Authors
Examples Sector How they relate to the typology
of entrepreneurship
Small scale venture Rowlinson
Knitwear
Corporate Survival
Social entrepreneurial
venture
Gravity Light Public Serial
Large scale venture KFC Corporate Lifestyle
P2 Explore the similarities and differences between entrepreneurial ventures
Every entrepreneurial venture conduct variety of work and their aim are also vary from
each other. On other hand there are some factors at which all type of entrepreneurial venture are
consider as same. On the basis of this both similarities as well as dissimilarity of different
venture are given below:-

Similarity between Small business entrepreneurship and Scalable startup entrepreneurship
 Constant Innovation: It refers to factor which is adopted by a company in order to
satisfy need and demand of customers in effective manner by offering innovative as well
as creative products and services. Along with this by offing innovative products and
services, company able to enhance their profitability ratio as well as market shares
(Decker, Haltiwanger and Miranda, 2014). In respect of small and Scalable business
enterprise they both adopt innovation factors which help them in offering effective and
appropriate products as well as services in order to fulfill need, requirement and demand
of customers.
 Capital Required: It is consider as most essential factor which help a company in
conducting their work as well as process in effective manner through which they able to
attain goal and objective. Along with this through appropriate capita company also able
to fulfill customer’s requirement and need. In respect of both type of entrepreneurial
venture they required capital in order to start their business operations as well as
functions which help them in satisfying need and demand of customer properly.
 Management: This refers to factor which help an organization in conducting its business
in effective way in order to fulfill customer’s need and demand. By this company able to
conduct its operations as well as functions properly (Dees, 2017). In respect of small
business entrepreneurship and Scalable startup entrepreneurship they both adopt proper
management so that they able to attain its goal and objective of attracting customers as
well as enhancing profitability ratio and market shares.
 Creating Brand awareness: Both Small business entrepreneurship and Scalable startup
entrepreneurship are developing strategies and plans so that they create their brand
awareness at marketplace through which more and more customers get attracted. Through
this they also able to encourage them to purchase their products and services. For this
both type of entrepreneurial venture adopt number of promotional and advertisement
activities such as advertisement through print media, TV, social media and so on.
 Creative Idea: Both Small business entrepreneurship and Scalable startup
entrepreneurship conduct market analysis on continuous basis so that they can adopt or

come up with creative and innovate idea. They also search for new technology or product
idea which attract customers as well as encourage them to purchase their products.
Difference between Social entrepreneurship and large company entrepreneurship
Basis Large Company
Entrepreneurship
Social
Entrepreneurship
Goals and objectives The main aim or goal these types
of ventures is to sustain in
market for a long time due to
which they develop innovative
as well as creative products and
services on continuous basis. For
example McDonald they offer
variety of products and services
for all customers which help
them in attract more customers.
Whereas main aim and
objective of this enterprise is to
serve society in order to
develop it as a better place for
leaving. For example Gravity
Light they develop light or
bulb which didn't produce
harmful chemical at
environment.
Risks In this type of enterprise risks is
medium because they may often
to manage sell huge amount of
products and services due to its
brand value (Demil, Lecocq and
Zott, 2015). such as if McDonald
face decline situation in a
particular place it will impact
their overall profit.
Here, in respective venture
risks are not too high because
these businesses units are
getting support from
government as well as public
due to their vision which help
them in attaining their goal and
objective.
Numbers of employees In respective entrepreneur
number of employees may be
approx 1000 or more then it.
In this number of employees
are depending on size of a
company. Such as Gravity
Light which is currently
operating by two partners.

TASK 2
P3 Interpret and assess relevant data and statistics to illustrate how micro and small businesses
impact on the economy
Now a day trend of opening or establishing entrepreneur is growing and it can be at small
as well as micro level. Government of almost every country is also supporting entrepreneurs who
are having innovative as well as creative idea because it will help them in developing their
economy and standard of living (Drucker, 2014). There are also various reports or articles are
published which shows how micro and small business enterprise impact on economy in positive
manner. According to some reports establishing a small venture required less amount of
investment. Moreover, on the basis of articles not all small ventures are supported by state or
local government because they also generate less revenue and sometime they may face loss. Due
to which very less investors want to invest in small entrepreneurship ventures. According to the
view point of Daily, Kieff and WilmarthJr (2014), small businesses are considered as a major
portion of up to dated capitalism. Along with this it is also considered as driving force which
helps country in development and growth of economy. But there is a factor that is owner of a
small business didn’t want to become owner for same level business for a long time, they want to
establish a big venture after succession of small one. This will encourage them in order to push
their boundaries which will strongly impact on economy at world wide level. Addition to this, as
per the view of Cassar, Ittner and Cavalluzzo (2015), Size as well as profit margin of small
business ventures are lower as compare to large entrepreneurship ventures, but it does not mean
that impact of small business ventures are not effective for economy of a country. Along with
this enhancing in market of small business enterprise reduce the boundary among small as well
as large firms.
Illustration 1: UK SME Data, Stats & Charts

By above graph it can be analysis that small and medium entrepreneurial venture
contribute in development of United Kingdom economy. From which small entrepreneurial
venture contribute less then the medium enterprise. Medium entrepreneurial venture contribute
highest in the development of economy of respective company.
From above given data it can be analysis that now a day market of small and micro
business enterprises get increased as compare to middle and large ventures. Establishing a new
venture is not so easy because owner of a company has to conduct various things such as market
analysis, identify potential customers and location, arranging budget, and develop products and
services and many more. Moreover, for establishing small and micro business less amount of
funding are required as well as entrepreneur who are establishing this type of ventures are highly
creative and innovative.
From above data or statistics it can be analysis that Brexit affect on business of small and
medium entrepreneur at United Kingdom. In respective place there are near by 5.7 millions
SME's are conducting their business that are creating or developing approx 73 % of jobs at
private sector. According to analysis there are nearby 2 millions employment are generated by
small and medium entrepreneurial venture (Brexit’s impact on small businesses: the experts may
be spot on after all, 2019). By conducting analysis of statistic of 2016, the annual turnover of
United Kingdom at combine basis is approx £1.9 trillion. The respective type of ventures provide
growth opportunities and employment at local, national and global level. Due to which their
I
llustration 2: Brexit’s impact on small businesses: the experts may be spot on after all
(Source: Brexit’s impact on small businesses: the experts may be spot on after all. 2019)

leaving standard get enhance and GDP get also increased. It is also analysis that there are near by
50 – 250 number of employees are working in medium entrepreneurial venture which generate
high ratio of profit as compare to other.
P4 Explain the importance of small businesses and business start-ups to the growth of the social
economy.
Social economy refers to a rich diversity which is established through enterprises and
organisations such as cooperatives, associations, mutual, foundations, social enterprises,
institutions and many more. These economies can be in large, medium and small size which will
directly or indirectly impact of society (Fernhaber, Gilbert and McDougall, 2014). The major
goal as well as objective of these ventures are to serve society properly by offering products and
services according to need of customers. Along with this, small business and business start ups
impact on society in positive manner and it is possible through various aspects, some major of
them are describe below:-
 Financial Independence: In every country small business enterprise makes peoples
financially independent. This is so because establishment of small business enterprise
generate employment as well as it will also help in developing standard of livening
properly. Small business enterprise generates employment for both male and female
which develop equality and financial independency of population. Financial indecencies
of a person or a country help in enhancing stability of life properly.
 Innovation: Innovation is essential for both every one because by it they able to enhance
their opportunities that leads to growth. Small business ventures are established through a
new and unique idea which helps them in satisfying need and demand of customers
properly (Glaeser, Kerr and Kerr, 2015). Along with this in respect of it these ventures
also adopt innovation as well as generate innovative idea which helps in attaining goal
and objective by providing products and service properly and effectively.
 Job Opportunities: Establishing of small business generate employment in country for
candidates of local, state, national as well as international level. This will also leads to
enhancement of standard of living because when there is more job opportunities are in

market or a country it will directly and indirectly leads to growth of economy which leads
to standard of living.
These are some major benefits or importance which a society can get through
development or enhancement of small and micro business enterprise. This will also help in
growing economy of a country in proper may which leads to increase in opportunities for society
or populations.
TASK 3
P5 Determine the characteristic traits and skills of successful entrepreneurs that differentiate
them from other business managers
There are various skills and traits of an entrepreneur which make them different from
other business managers. Some of these skills are form birth as well as some are enhance through
sessions and learning. These various characteristics, traits and skills are important for an
entrepreneur in order to established a successful business as well as increase its growth (Gupta,
Chiles and McMullen, 2016). Evaluation of characteristic traits and skills of different
entrepreneurs are given below:-
Peter David Jones
He is a British entrepreneur who born in year 1966. He is famous for establishing an
academy for young peoples where diverse type of skills are taught. He has various skills and
characteristic from which some of them are mentioned below:-
Skills
 He has the skills of time management which help them in conduct each and every work in
effective manner and at proper time.
 He has also ability to risks so that they can face or fight with every situation properly.
Along with this, respective skill also help him in coming up with new and innovative
idea.
Characteristic

 He has very good communication skills due to which he able to attract young peoples
easily and properly.
 He has ability to generate new as well as innovative ideas and he is recognized due to
property, retail, mobile phone and so on. Along with this he has very strong presence in
young generation.
Henry Ford
He is one of the successful entrepreneur who is operating motor company. He is also
sponsor of assembly line at mass production. He has also several skills and characteristic which
attract other, some of them are explain below:-
Skills
 He has one of the effective skill i.e. motivation skill. He motivate its employees in
effective manner so that they accomplish their work properly and they attain their target.
 He is consider all of his employees and provide equal opportunity to them which shows
that he has quality leadership skills which help him in attaining their goal properly.
Characteristic
 He is a risk taker which help them in adopting new and innovative idea which help them
in attaining their objective effectively.
 Along with this he has positive attitude which help and encourage them in facing each
and every environment in effective as well as positive manner.
Difference between successful entrepreneur and business manager:
Basis Successful entrepreneur Business manager
Status AN entrepreneur is describe as
a owner of a business or
venture.
Business manager is a person
who is an employees of a
company.
Aim Their main aim is to operate a There main aim is to direct and

business venture in effective
manner which leads to
attainment huge profit.
guide employees of company
so that they conduct their work
properly.
P6 Assess how aspects of the entrepreneurial personality reflect entrepreneurial motivation and
mindset
The entrepreneurial personality of a person is important for establishing a business as
well as become motivated so that they can deal with various problems and risks that associated
with business in effective way which directly leads to attainment of goal and objective. Along
with this entrepreneurial personality of an individual include various characteristics by which a
person may create new as well as innovative ideas which can be implementing in order to
generate or enhance revenue (Naudé, 2014). These ideas or activities must meet need as well as
demand of potential or target customs. For which it is essential to conduct evaluation and
constantly develop new and innovative ideas for sustainability at a market place for a long time.
Moreover they also need to have ability to take risks as well as use or utilize resources in
effective ways by reducing wastage. For which they must need to set the goals, mission and
vision for its business which help in developing strategies, plans and policies to achieve goal and
objective properly. It is also necessary for an entrepreneur to identify opportunities so that they
can develop strategies which leads to increase in sales and generate revenue.
Big five Personality trait model
It is five factor model which describes individuals personality on basis of openness,
conscientious, extraversion, agreeableness and neuroticism. These five factors are explained
below:
 Openness: In this sector, an individual is always ready to learn new things which can
enhance their skills and knowledge. In addition to this, they are energetic and active and
interact with their family members, societies group and many more. Along with this, they
are very innovative and have large assortment of interests.

 Conscientious: In this personality trait, people set their target and prepare schedule to
achieve them. They pay attention to small details and complete their task in a specific
time period.
 Extraversion: This traits describes individual personality as open minded, takes
initiative in interacting with others, enjoys new company of friends and so on.
Extraversion people easily adjust in families, communities and so on and they always
focus on gaining attraction of others.
 Agreeableness: This trait explains about people who are more concerned about other
people rather than themselves. Along with this, they mostly deal with the issues related to
other people. They enjoy helping other and contribute in their suffering. These kind of
individuals are mainly indulge NGOs.
 Neuroticism: These individuals are in low life state which means they usually get
irritated in small things. They also does not open in front of other people and get
frustrated. Along with this, they also get nervous and stress when they face any kind of
uncertainties.
These characteristic and personality of an entrepreneurship describe that they perform
differently in diverse situation such as family, friends and so on. Along with this there are some
factors which impact on these personality traits i.e. lifestyle, cultural differences, personal
context, family upbringing and many more.
TASK 4
P7 Examine, using relevant examples, how background and experience can hinder or foster
entrepreneurship
Personal background and experience of a person is highly impact on a business and its
activities as well as it will also promote business entrepreneurship or venture. Personal
background of an individual includes support from friends and family which help them by
providing support in various ways such as motivation, financial background and others.
According to this process, if a person gets appropriate support from its friends and family then

they get motivated and encourage conducting business activities correctly (DAILY, KIEFF and
WILMARTH , 2014). Support of family as well as friends can increase motivation and ability to
take risk which can promote entrepreneurship activities. Along with this, financial background of
an individual also impact on risk-taking ability of a person and help them in starting a business.
Moreover if a person not able to get support from family and friends then they may feel
demotivated which directly impact on its entrepreneurship activities in negative manner.
Personal experience also increases opportunity for establishing entrepreneurship in proper
manner. If experience of a person is good then he/ she can continue its business for a longer time
by generating proper profitability ratio. But whereas if an experience and support of a person in
not proper then it will directly impact on its entrepreneurial activities due to which they may face
loss or decline situation. Along with this, personal background and experience of an individual
help as well as allow them to establish a successful business in order to serve society with its
innovative products and services.
Example of entrepreneurs whose experience and background help them in gaining
opportunities
It is not easy to become a successful entrepreneur because due to family background,
caste, religion, and several other sectors creates hurdles in path of an individual. But making
these obstacles as their strength they become a successful entrepreneur.
 Henry Ford:- Henry Ford who is a founder of Ford Motor Company as well as an
industrialist also faced many difficulties in becoming business tycoon. His family was not
financially strong as his family has a farm in which Henry Ford father William Ford used
to run. But after death of his mother Henry Ford started working with a company names
Edison Illuminating Company of Detroit. He had potential growth in that business. Henry
Ford was a man who loved to do experiments and inventions. He invented his first
automobile Model-T in 1908. He wants that whatever products they sell to their
customers must reflect its identity. Therefore, it can be said that Henry Ford family
background was hinder for him and he also faced various obstacles. But he took his
failures as an opportunities and kept himself motivated and positive. In addition to this,

after few years he started his own business and became one of the well known personality
worldwide and foster to become a successful entrepreneur.
 Ms Rana Harvey :- Ms Rana Harvey who is a chemist and established a business with
the name of Monster Group. During this process, she plans her business, conduct
recruitment of employees and develop strategies as well as plans in order to do marketing
and dealing with risks for attaining its goal. She is self-motivated woman who used her
office as a chemistry lab in order to conduct work properly without getting bored from
work (Chi, Tansuhaj and Sun, 2016). Moreover she have some other skills or abilities
such as she is self-motivated as well as she also take participation in business programs in
order to gain experiences so that she can do her work in proper way. Along with this she
also do future planning which focuses on various activities such as financial
management, works hard to run operations, motivate employees and many more.
CONCLUSION
From above discussed points it can be conclude as well as evaluate that now a day it is in
trend to establishing entrepreneurship unit is order to become independent and successful. Along
with this governments are also supporting those individuals who want to established an
entrepreneurial unit because by it country able to enhance their standard of living as well as
economy. While establishing a successful entrepreneurial unit an entrepreneur faces various
issues or problems which directly impact on their working. So in order to avoid barriers an
entrepreneur must conduct evaluation as well as analysis of market which help them in
identifying their potential customer and their needs, demand and requirement. A person have
various options related to which type of entrepreneurial business they want to established in
order to attract customers. Along with this, they also required various skills, knowledge and
ability so that they can conduct or operate their business in appropriate manner.

REFRENCES
Books and journals
Chi, T., Tansuhaj, P. and Sun, Y., 2016. International Entrepreneurship Activities and Business
Performance: An Empirical Study of Chinese Textile and Apparel SMEs.
DAILY, J.E., KIEFF, F.S. and WILMARTH JR, A.E., 2014. Introduction. In Perspectives on
Financing Innovation (pp. 13-16). Routledge.
Davidsson, P., 2015. Entrepreneurial opportunities and the entrepreneurship nexus: A re-
conceptualization. Journal of Business Venturing, 30(5), pp.674-695.
Decker, R., Haltiwanger, J., Jarmin, R. and Miranda, J., 2014. The role of entrepreneurship in US
job creation and economic dynamism. Journal of Economic Perspectives, 28(3), pp.3-
24.
Dees, J.G., 2017. 1 The Meaning of Social Entrepreneurship. In Case Studies in Social
Entrepreneurship and Sustainability(pp. 34-42). Routledge.
Demil, B., Lecocq, X., Ricart, J.E. and Zott, C., 2015. Introduction to the SEJ special issue on
business models: business models within the domain of strategic
entrepreneurship. Strategic Entrepreneurship Journal, 9(1), pp.1-11.
Drucker, P., 2014. Innovation and entrepreneurship. Routledge.
Fernhaber, S.A., Gilbert, B.A. and McDougall, P.P., 2014. International entrepreneurship and
geographic location: an empirical examination of new venture internationalization.
In Location of International Business Activities (pp. 94-136). Palgrave Macmillan,
London.
Glaeser, E.L., Kerr, S.P. and Kerr, W.R., 2015. Entrepreneurship and urban growth: An
empirical assessment with historical mines. Review of Economics and Statistics, 97(2),
pp.498-520.
Gupta, V.K., Chiles, T.H. and McMullen, J.S., 2016. A process perspective on evaluating and
conducting effectual entrepreneurship research. Academy of Management
Review, 41(3), pp.540-544.
Jaskiewicz, P., Combs, J.G. and Rau, S.B., 2015. Entrepreneurial legacy: Toward a theory of
how some family firms nurture transgenerational entrepreneurship. Journal of Business
Venturing. 30(1). pp.29-49.
Naudé, W., 2014. Entrepreneurship and economic development. International Development.
Ideas, Experiences and Prospects.
Online
Brexit's impact on small businesses: the expert may be spot on after all. 2019. [Online].
Available through:<http://theconversation.com/brexit-impact-on-small-businesses-the-
experts-may-be-spot-on-after-all-90561>.
UK SME Data, Stats & Charts. 2019. [Online]. Available
through:<https://www.merchantsavvy.co.uk/uk-sme-data-stats-charts/>.