Importance and Impact of Small Business in UK : Project

Added on -2020-07-22

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INTRODUCTIONEntrepreneurship is the activity of setting up a business firm taking risk in thehope of earning profit in long run and to see the firm growing. All the entrepreneurialventures are working in the market to develop the economy and the company and toachieve the objective of the firm. The present project is about the growing importanceand the impact of small businesses in UK how they are contributing in the economicdevelopment of UK. Small business enterprise give employment to economy, developit, provide raw material to big firm and upbringing the poor section of society bygiving them better livelihood. To be a successful entrepreneur it is necessary to be selfmotivated and confident in what individual is doing or with idea which he is having.TASK 1P1 Examining different types of entrepreneurial ventures and how they relate to thetypology of entrepreneurship.Entrepreneurship is a procedure of starting, designing and running a newbusiness which initially is small scale offering product or services in market whetherfor sale or for hire (Campbell and Park, 2016). This also include the willingness todesign, develop and manage a firm or a business venture considering the risk involveand profits earned. Entrepreneurship does not only mean to start business but it ismuch more than that which includes managing, organising and developing businessand earning more and more profits. There are many types of entrepreneurial ventureswhich include small business, large scale, social or voluntary. They all are operatingin the market main aim is to develop and grow in long run and also to sustain ineconomy. Small Business entrepreneurship- these are the small set up of businesswhich are mainly operated by single entrepreneur who is owner and manager ofown b venture. There are very large number of small business enterprisewithin UK that are impacting economy of UK on much larger scale. (Cassonand Pavelin, 2016). Small business enterprise and freelancer are that typewhich involve self employed individuals to earn long run profits. They are run1
by the founder's or owner's skills, strengths and passion to bring up business inthe market they are a great source of employment to small areaSocial enterprises or Voluantray- they are mainly working to makeenvironment and society clean by their hard work they work for some socialcause. Their goal or objective is to provide maximum social impact and desireto make world a better place to live in. They help in improving the quality oflife lead by under develop section of society and are normally work not forprofit with a philanthropic mission. Capital is generally raised through charitywhich depend upon the type and size of the organisation it is working for. Theyare meant to produce good and services which are generally for betterment ofpublic and they are getting best out of those products and services.Large Company- are the large and big firms of market which is established topromote growth and development in market. Established companies provideemployment on a large scale earning a sustainable revenue and profits forcompany and shareholders. Capital is raised by government subsidies, revenuegenerated and profits earned. Established companies includes corporations likegeneral motors and general electric. These companies provide most jobopportunity and source of revenue to government. They are the source ofinnovation and development within country which is employing qualifiedyouth.Sole proprietorship: These kinds of ventures are referring to those businesspersonalities which perform the operating activities in small-business organisations. This isbasically a survival for small scale business personalities. In this type of business, the ownermakes all the decisions and not obligates to anyone when it comes to deciding the location ofthe business, what to sell, whoto hire or anything else. The entrepreneur is a recipient of allthe profits generated by business as is not legally bound to share the profits with anyone else.Partnership- it is that type of venture which is owned by two or by more persons atthe same time they all in the said ratio distribute all profits and losses. All partners help inthe setting up of the business, financing, and the ongoing business expenses. The profitpercentage depends upon the ratio in which they have done the investment at the time of set2

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