Impact of Small Business on UK Economy

The assignment provided is a detailed analysis of the impact of micro and small businesses on the economy of the UK after Brexit. It explores similarities and differences between micro and small businesses, as well as their role in supporting economic growth and providing opportunities for job creation, better product services, and creative ideas. The study is based on various research papers and books, including 'The Nature of Academic Entrepreneurship' by Abreu and Grinevich, 'Small Business Performance' by Blackburn et al., and 'Entrepreneurship and Small Business' by Bridge and O'Neill.

ENTREPRENEURSHIP

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Various types of entrepreneurial ventures and explaining the way they are related to an
entrepreneurial typology.............................................................................................................1
P2 Similarities as well as difference between different entrepreneurial ventures.......................2
TASK 2............................................................................................................................................3
P3 Illustrating the way micro as well as small business have effect on economy......................3
P4 Important contribution of small business to growth of Social economy...............................5
P5. Mini research in order to determine characteristics, traits and skills of two successful
entrepreneurs...............................................................................................................................6
P6. Assessing aspects of entrepreneurial personality, reflecting entrepreneurial motivation and
mindset........................................................................................................................................8
P7. Examining background and experience hindering and fostering entrepreneurship.............9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
The term entrepreneurship is defined as the study of business that is created and also the
actual process in order to start new business.(Ang, 2018). Further, it describes different types of
entrepreneurship ventures and their relation with their typologies. It also states the similarities
and differences between those ventures. This report also presents the importance of micro as well
as small business and also their impact on economy. This report maximises the information of
small business and business start-ups on the social economic growth. Thus, this assignment also
highlights on characteristics, traits and skills of two successful entrepreneurs and also their
background as how it foster and hinder entrepreneurship.
TASK 1
P1 Various types of entrepreneurial ventures and explaining the way they are related to an
entrepreneurial typology
An entrepreneur is a person who establish as well as manages business with limited
resources. Business own or entrepreneur has control on all the business operations. They are
liable for all profits and losses in business. An entrepreneurial venture can be referred to as
companies which facilitates innovation with the purpose of producing social or economic value.
It is the characteristics of an entrepreneurial venture that these firms develop those products
which do not have presence in the market.
There are mainly four types of entrepreneurial ventures these are:
Small business entrepreneurial ventures: These types of entrepreneurial business are
established as well as managed by only single person that is business owner. These types of
firms have few business operations. It also operates business on small scale. Small business
entrepreneurial have high potential to foster growth. The main purpose of such types of firm is to
maintain market share. In addition to this, other objective of small business entrepreneurial
venture is to provide high level of satisfaction to customers. Such organisation provides
employment opportunity to local people. An entrepreneur obtains capital or funds from family
members or friends in order to fulfil business need. Hairdressers, electricians, plumbers are
example of small entrepreneurial business venture.

Large entrepreneurial business: Such types of firm are large in context of their size and
number of operations performed by them. These types of companies operates business at large
scale. Such firm has varieties of business operations. There are many factors such as changes in
customer preference or taste, increase in competition, advancement in technology might force
large organisation to facilitate innovation and for developing new products. Size as well as
culture are two important or major elements due to which large companies might face difficulty
in facilitating innovation. These firm sustain in highly competitive business environment by
offering innovative goods to customers. There are different functional department in large
companies. Main purpose of these types of entrepreneurial venture is to generate high revenue
and profit. For instance, Tesco is big company operating business in retail sector.
Social entrepreneurship: These types of entrepreneurial venture are also considered to
be as innovators. These firm develop innovative products or services with the purpose of solving
the various issues faced by people in the society. Objective of social entrepreneurial venture is to
bring positive as well as drastic improvement in the society. These are generally non- profit
organisations. For example, Care international their main purpose is to help in reducing poverty
in the nation.
Medium entrepreneurial business: In such types of business, an entrepreneur is responsible for
managing all employees. These firm generally have a greater number of business operations
which are to be performed on routine basis.
Entrepreneurial Typologies
Scalable start up entrepreneurial ventures: Purpose related to establishing such type of
company is to bring positive as well as drastic improvement in the world. Such types of firm
attract investors by presenting innovative business ideas. Main objective of Scalable start-up
venture is to expand business operations (Blackburn, Hart and Wainwright, 2013.). These types
ventures are established as well as managed by an entrepreneur those who have depth knowledge
about business. For instance, Vida is operating business in heal care sector.
Serial entrepreneurs: These types of entrepreneur generally have innovative thinking and
they apply innovative ideas in performing routine business activities. Business owner of
such type of organisation have unique quality such as optimism, passion , self confidence
etc. and traits which makes them different from other entrepreneurs.

P2 Similarities as well as difference between different entrepreneurial ventures
The difference between scalable and small business entrepreneurial ventures
Scalable entrepreneurial ventures Small scales entrepreneurial ventures
The main purpose of these types of firm is to
bring change in the world.
Objectives of small scale entrepreneurial
venture is to provide high level of satisfaction
to customers.
An entrepreneur borrows money from friends
or family members for fulfilling business
requirement.
Business owners borrow funds from bank or
money lenders.
Such firms attract investors by sharing
innovative business ideas.
These organisations does not have to take
initiatives for attracting investors.
Scalable start have few business operations as
compared to small organisations.
These business venture have various business
activities to perform.
The purpose of scalable entrepreneurial
business venture to disrupt the market with a
scalable and impactful business model.
Objective of small-scale entrepreneurial
venture is to maintain its position in the market.
Scalable entrepreneur intends to foster growth An entrepreneur has focus on maintaining
control on their business.
Establishment of scalable business involves
high risk
Establishing of small entrepreneurial venture
involves less risk.
These types of entrepreneurial ventures require
huge investment.
Small business entrepreneurial venture requires
less capital investment.
These type of organisations generally have
creative skills
Small business ventures have innovative
abilities.
Similarities between small and scalable entrepreneurial business venture
Both of the entrepreneurial venture purpose is to foster growth. Small as well as scalable
start-ups have same objective is to earn higher profits and gain market share. Both types of
entrepreneurial venture have focus on providing the high level of satisfaction to customer. Small
and scalable start-up have focus on catering to the needs as well as demands of customers by

offering innovative products (Schaper and et.al., 2014). Objectives of both types of business
venture is to achieve leadership position in an industry.
TASK 2
P3 Illustrating the way micro as well as small business have effect on economy.
Small enterprises are categorised on the basis of their size, number of employees and
budget. These firm has less than 250 employees. In UK there are approximately4.7 million
companies are operating business at small scale. The small business ventures in United Kingdom
contributing a lot towards economic development as well as generation of employment in the
nation. In addition to this, small business has supported United Kingdom in overcoming the
financial crisis after Brexit. Small business has supported nation in attracting investors to make
investment. These enterprises have supported government in identifying the new sources of
income. Small medium enterprises in United Kingdom has provided employment opportunities
to approximately twenty-seven million (Barringer. and Ireland,2010). Among the total workforce
in United Kingdom, approximately twenty-five million people are working in small firms. There
are basically three sectors these are whole retail industry, hospitality and real estate industry are
making their significant contribution in economic growth of nation. As per the report published
by science, technology published in 2009, has revealed that approximately six percent of small
medium enterprises in United Kingdom with high growth rates majority of jobs in United
Kingdom.
In addition to this, small business venture in UK have contributed a lot in promoting
innovation. Small business firms give people a chance to become financially independent. These
organisations have played crucial role in bringing the economic stability in the nation. Small
entrepreneurial venture provides goods and services to people which are required by them for
fostering growth. At the same time, it enables people with good ideas to act upon them and make
their business a reality. Small business venture is considered to be as the backbone of UK
economy (Abreu and Grinevich, 2013). These firm through their innovative as well as creative
skills encourage investors and influence them to make investment. In addition to this these
enterprises by developing innovative products or services attracts domestic as well as
international customers. In simple words, small business has positive impact on the economy of
the nation. After Brexit, big companies have faced huge complication. Britain was the country

which was highly based on the export and import. But after Brexit trade relationship with the
nations have been finished. This has created major barriers for the large enterprises in context
executing their business
Small business enterprises are generating approximately eleven million receipts in a year.
The European Commission’s SME Performance Review estimates the Gross Value Added of
SMEs as €473 billion or 49.8% of the UK economy. These types of entrepreneurial venture
motivate people to invent new products or implements the idea which further assists an
individual in developing a new source of income. Small business entrepreneurial venture has
strong effect on economy, as these enterprises have high disposable income. Since 2015 they
have generated approx. 46% employee’s opportunities for people (Drucker, 2014.). Small
medium enterprises in United Kingdom is supporting the growth of manufacturing industry
which is considered to be as important sector of the economy. In addition to this, small business
firms helping for the development of the tourism and providing the new source of income for
local people as well as government
Illustration 1: Contribution made by different sectors to UK economy
(Source: London school of Economics and political science,2018)
P4 Important contribution of small business to growth of Social economy
In United Kingdom, small business enterprises are contributing a lot towards social
development. These firm has created the employment opportunities for local people. Small
business organisation develops as well as delivers products which are required for development
of society. They encourage people to facilitating innovation and helps them in improving their

lifestyle. Small businesses contribute to local economies by bringing growth as well as
innovation to the community in which the firm is established. The main purpose of small
business enterprise is to solve the issues which are faced by people in the society. The income
earned by small business enterprise are generally utilised for development of society (Scott,
2016). In addition to this, businesses create an identity for the community indulged into carrying
out the business. Municipalities and tourism boards try to preserve these unique characteristics of
a community for advantage of the society. Small enterprises in United Kingdom is considered to
be as driver of innovation as well as productivity. These firms are providing training as well as
education to local people which has helped public in development of skills and core
competencies. Small medium enterprises in United Kingdom is playing crucial role in promoting
competitiveness of products in the market. These small business enterprises are creating lot many
opportunities for domestic people. Small enterprise is very much essential for economic growth
of nation.
In addition to this, small business enterprises focus on marketplace. These
companies possess high potential to provide opportunities in the form of product selling and
services acquiring to people in the society. These firms are familiar with the concept of
innovation that give rise to fast development of new products which can fulfil continuously
changing requirements of customers. Small business enterprises are considered to be as
economic as well as social engines of the community (Bridge. and O'Neill, 2012). These
business entities produce the goods or services for catering to the needs as well as demand of
local people. Such organisations also provide services to big companies. Small business
enterprises help people in improving their living standards. In addition to this, small enterprises
encourage local people to get self-employed and start their own business which give rise to the
industrialisations which have positive effect on social development. These firms play crucial role
in encouraging people to develop sense of community. Small medium enterprises bring in money
from customers outside the community. That money makes the community wealthier. These
organisations provide a unique social communication within the society that can foster friendly
relationships.

TASK 3
P5. Mini research in order to determine characteristics, traits and skills of two successful
entrepreneurs.
Entrepreneur is that individual that is known for organising, managing and assuming
risks of business and enterprise (Burns, 2016). They are also able to recognise opportunities that
arises in terms of business as compared to others. This skill of recognising is termed as a unique
talent of entrepreneur that makes them different from ordinary businessman. Thus,
characteristics, traits and skills of entrepreneurship has been discussed as per below context-
Steve jobs
Steve Jobs was business magnet who has an ability of attracting huge volume of
customers towards its business (Charman and et.al., 2017). He is also an investor of America. In
addition to this, he was Chief Executive Officer and also the chairman of the successful company
Apple Inc. further, he was also recognised widely in terms of innovator of microcomputer
revolution with Steve Woznaik who is the co-founder of Apple.
Characteristics-
 He believes in doing those things that he loved to do and that makes him to enjoy the
work so that he can put his whole efforts in his work.
 He always chooses to be leader instead of being the follower. This gave him the ability in
terms of offering solutions and encouragements.
Skills-
 The high quality skill of Steve Jobs is that he has both passion and self confidence that
helped him in order to turn dream into reality.
 He also has an ability of not comparing his efforts with the money. Instead of comparison
he follows the excellence and ideas.
 Thus, the ability to follow his dreams lead him towards success.
Traits-
 He has an ability in order to focus on the needs and wants of the customers. This ability
made his products as the most loved ones and also first chosen by customers.
 The sense of urgency he has helped him soughing innovative solutions.
 He builds the products before it is realised by the customers about the needs and this
sense and ability gave him a drive.

Thus, the ability to follow the dreams of Steve jobs makes him different from other
entrepreneurs.
Bill gates
The successful and famous entrepreneur Bill Gates is an American business magnate and
is the author and principle founder of Microsoft Corporation (Cowling and et.al., 2015). He also
held the place of the largest individual shareholders. He also held various positions including
chairman, CEO and chief software architect and launched Microsoft. This software made him
famous in the whole world.
Characteristics-
 He is one of the honest human being that accepts the things that is done by him actually.
 He has positive attitude that helps him in motivating himself in terms of performing
various tasks.
 He has great sense of humour that helps in maintaining communication with employees
that are involved with him in the business.
Skills-
 The most important quality that makes every businessman to reach the success is risk
taking ability. Bill gates has this ability that he gained from past experience which helped
him and his company to reach the boost.
 He is determined in making things work that helped in overcoming the obstacles that
caused trouble for him in the path of success.
Traits-
 He works in order to help other rather than follow his own goal that will give him
personal gain.
 He stays committed to team and always respect the staffs that are involved in his
company.
Thus, the ability to respect the team makes him the most unique person and successful
businessman.
P6. Assessing aspects of entrepreneurial personality, reflecting entrepreneurial motivation and
mindset.
The attributes of personality include characteristics, attitudes motives and values of an
individual that is working in particular organisation (De Vries and et.al., 2017). Thus, the

personality of entrepreneurs plays important role in order to manage the motivation and mindset.
The positive and valued attitudes of bill gates and Steve jobs motivates their mindset and also
influence it that later helps them in seeking for opportunity that will help them in problematic
situation (Fritsch, Kritikos and Pijnenburg, 2015). This personality and attitudes will help them
in order to improve performance that will lead them in overcoming all the challenges that they
have to faced on the way to success. This will also help them in removing fear of failure in
different situations that come as a challenge for them. Thus, every business face some or other
types of failures but the attitude of the both successful entrepreneur help them top turn failure
into success. This will help them in order to remove all the confusions that causes conflicts that
affects their working environment will help them in increasing sales and high rate of profit.
Furthermore, the traits that are creative and unique from other businessman will help
them in getting motivated in order to generate new ideas that will lead in achieving long term
success for business (Lee, Sameen and Cowling, 2015). These ideas will later help in improving
the business functions and attract large number of consumers towards them. Thus, all this
challenges that Steve Jobs and Bill Gates has to be faced will develop the ideas in terms of
changes that are developing in markets and accordingly generate ideas that will help them in
overcoming the obstacles. This will also help them in self improvement and also developing
better versions of themselves. Later, the success and profits of the enterprise or business is also
maximised by facing such challenges. Thus, this also helps them in creating corporate image in
market that will attract more people towards them. Thus, to engage themselves in the situations
that act as a greatest challenge for the businessman will help in motivating themselves to develop
their mindset and develop new ideas in terms of success.
Thus, to overcome those challenges they adopted the strategy of Blue Ocean that create
the business strategy of enterprise and is based on various ides that enterprise wishes to achieve
higher profit with help of creating new demand in market that are non-corporative.
P7. Examining background and experience hindering and fostering entrepreneurship.
Background and experience plays vital role in hindering and fostering entrepreneurship.
There are two successful entrepreneurs taken Bill Gates and Steve Jobs into consideration
(Lindberg, and et.al., 2017)). Bill gates is of that family where there is a business of rich people,
political and community service background. Further, from early days’ bill was ambitious,
competitive and intelligent in terms of performing task. All these qualities of Bill gates helped

him to achieve great position in the world and also assisted him accordingly. Later, bill and his
one of the close friend formed new company of his own that he named as Traf-o-Data. In this
company they developed the computers that helped them in measuring traffic flow. This project
lead them in earning more profit so that it can be considered as one of the best perspective in
order to look upon the vision of Microsoft. Thus, the computers that were developed worked
successfully on every desk wherever placed that made him so successful as he is today. He is
also known as the most visionary person that tries to work very hard by putting maximum efforts
in order to accomplish those vision that has been measured by him. This made him to take any
type of risks that came in his way towards success. He always thought of facing more challenges
and competition until he dies. Thus, with other companies of software, he competes merely
which assist them in building computer institute of the university of Stanford.
Thus, as mentioned above the another successful entrepreneurs that is discussed upon is
Steve Jobs who is a known computer designer and corporate executive. Having the vision of
pursuing the most affordable computer compared to others he launched one of the largest
industries of the past decades in the twenties (Lindberg and et.al., 2017)). He remains one of the
most inventive and energetic minds in American technology. After completing his higher school
studies, he attended Reed College in Portland. He became the fascinated with the marketing
potential of such computers. Later he worked with his friend and they named the company as
Apple Computer Company. He also redesigned their computer with the idea of selling it to the
individual users. It also encourages him in order to launch apple into market. After graduating
high school, Steve Job realised that there were huge gap in the market of computers. And at that
time there were several computers at mainframes. They were also large that could help in filling
in a room and also were very costly. It was not easily affordable by every person or individual.
Therefore, he redesigned the computer. Experience of them is also good that increases
understanding of computer program and also its knowledge.
It is the biggest catalyst that helps in formation of individual personality. The main
concept of risk carries tremendous opportunities and challenges for individuals and it is an
important factor that is developed through times and knowledge is acquired accordingly.
CONCLUSION
Thus, from the above report it has been concluded that it is wholly based on the concepts
of entrepreneur and their different types of ventures that will help in investigating and exploring

similarities as well as differences between them. Further, it also discusses about the impact of
micro and small business on the economy of UK after Brexit took place. In addition to this, the
study is based upon the importance of small scale business that supports the economic growth of
UK and also gives positive impact on the country's economy by giving various opportunities.
The opportunities include job creation, better product services and also creative ideas. Therefore,
from all this it has been analysed that small business has an ability of giving better results and
long lasting goals for the country.

REFERENCES
Books and Journal
Abreu, M. and Grinevich, V., 2013. The nature of academic entrepreneurship in the UK:
Widening the focus on entrepreneurial activities. Research Policy. 42(2). pp.408-422.
Ang, J. S., 2018. Toward a Corporate Finance Theory for the Entrepreneurial Firm.
Barringer, E. and Ireland, R. D., 2010. Successfully Launching New Ventures. Pearson.
Blackburn, R. A., Hart, M. and Wainwright, T., 2013. Small business performance: business,
strategy and owner-manager characteristics. Journal of small business and enterprise
development. 20. 1. pp. 8-27.
Bridge, S. and O'Neill, K., 2012. Understanding enterprise: Entrepreneurship and small
business. Palgrave Macmillan.
Burns, P., 2016. Entrepreneurship and small business. Palgrave Macmillan Limited.
Charman, A. J. and et.al., 2017. Small area census approach to measure the township informal
economy in South Africa. Journal of Mixed Methods Research. 11(1). pp.36-58.
Cowling, M. and et.al., 2015. What really happens to small and medium-sized enterprises in a
global economic recession? UK evidence on sales and job dynamics. International Small
Business Journal. 33(5). pp.488-513.
De Vries, G. and et.al., 2017. Trademark or patent? The effects of market concentration,
customer type and venture capital financing on start-ups’ initial IP applications. Industry
and Innovation. 24(4). pp.325-345.
Drucker, P., 2014. Innovation and entrepreneurship. Routledge.
Fritsch, M., Kritikos, A. and Pijnenburg, K., 2015. Business cycles, unemployment and
entrepreneurial entry—evidence from Germany. International Entrepreneurship and
Management Journal, 11(2). pp.267-286.
Lee, N., Sameen, H. and Cowling, M., 2015. Access to finance for innovative SMEs since the
financial crisis. Research policy. 44(2). pp.370-380.
Lindberg, E., and et.al., 2017. Enhancing students’ entrepreneurial mindset: a Swedish
experience. Education+ Training. 59(7/8). pp.768-779.
Schaper. And et.al., 2014. Entrepreneurship and small business.
Scott, A., 2016. Returning Home: Economic Cooperation between African-Americans and
Africa.