Role of Small Business in Improving Growth of Social Economy after Brexit

This article discusses the role of small businesses in improving the growth of the social economy after Brexit. It explores how small businesses contribute to the economy and provide employment opportunities. It also highlights the difference between start-ups and small-scale businesses.

ENTREPRENEURSHIP

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Different kinds of entrepreneurial ventures and its related typologies..................................1
P2 Similarities and Difference between entrepreneurial ventures..............................................3
TASK 2............................................................................................................................................4
P3 Interpret and assess how small & micro enterprise impact on economy...............................4
P4 Role of small business in improving growth of social economy after 'Brexit'......................7
TASK 3............................................................................................................................................9
P5 Characteristics, traits and skills of successful entrepreneurs and differentiation with
manager.......................................................................................................................................9
P6 Skills of entrepreneurs which shows entrepreneurial motivation and mindset....................11
TASK 4..........................................................................................................................................13
P7 Factors which hinder or foster entrepreneurship.................................................................13
CONCLUSION..............................................................................................................................14

INTRODUCTION
Entrepreneurship is the procedure who individually begins their business and bear all
risks as well as losses through themselves. It is an changing process for creating wealth through
taking higher risk within their enterprises (Blackburn, Hart and Wainwright, 2013). It can be in
any form like as cost, time, quality and many more. Entrepreneurs have lots of innovative and
new ideas which help in producing new products in the marketplace. With this, it is important for
entrepreneur to be creative and innovative in order to attract high numbers of buyers.
Management of small business is the procedure of managing operations as well as activities
which is conducted in small business for maintaining and controlling them in an effective
manner. In this assignment, it includes various kinds of ventures and its typologies. In this, they
also analyse experience as well as background of entrepreneur which foster and hinder the
entrepreneurship.
TASK 1
P1 Different kinds of entrepreneurial ventures and its related typologies
Entrepreneurial Ventures
This venture is same like a regular business but it is not so. It is a enterprise which is run
by creative or innovative people and they know how they can grab opportunity to manufacture
economic as well as social value in their enterprise effectively. This is very fast in creating
wealth with higher risk in order to produce services and goods.
Entrepreneur
Entrepreneur begins their own business as well as run their enterprise functions with
limited resources. This person is only responsible in order to make innovative as well as new
goods through bearing all risks and losses by themselves (Bridge and O'Neill, 2012).
Types of entrepreneurs Serial entrepreneurs: Individual person begins their own business in a continuous
manner as well as sell it at the stage of later. In this, they are having various types of new
and innovative ideas as well as finance. Social entrepreneurs: In this, individual person mainly focus on solving problems of
society instead of earning higher level of profits. This type of persons are more capable
and ambitious in handling essential social issues are faced by society members.
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 Female entrepreneurs: These type of entrepreneurs run whole enterprise in which
mainly it involve women's. These enterprises are owned as well as regulated by women
itself. In this, entrepreneurs are responsible for creating 50% employment.
 Male entrepreneurs: These entrepreneurs are responsible for running and controlling
ventures that are solely lead by them. The main aim of these entrepreneurs is to gain
competitive advantage at market place through provision of unique products to appeal
effectively to customers.
Entrepreneurship
It means as the capabilities as well as willingness to organise, develop and manage a
business venture by taking high risk in order to gain profits. This is a person who run as well as
develop all the business activities by themselves.
Kinds of entrepreneurial ventures Small business entrepreneurship: As per current scenario, there are 6 millions small
business which are running within present market in UK. It includes various types of
business like as grocery stores, travel agents, electricians, consultants and many more.
These all run their own business by their own risks as well as profits through themselves.
In United Kingdom, there are around 5.7 million of small businesses which provide the
employment opportunities to local people for the purpose of enhance their living
standard. Large business entrepreneurship: These can be referred to as those organisations which
conduct their activities with the sole motive of providing best quality products and
services to people. These entities emphasize upon innovation and leverage the same to
attain growth and popularity at market place. Such entities are aimed at fulfilment of
needs and preferences of customers so as derive maximum contentment from them.
 Social Entrepreneurship: In this type of business are running to provide benefits to
society through giving them goods according to their needs. They produce healthy
products which do not provide harm to society in negative way (Carsrud and Brännback,
2011). These are mainly innovators and their focus on developing the services or
products which can solve social problems and requirements.
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 Scalable Entrepreneurship: These are the enterprises which create by their better ideas.
This type of entrepreneurship has a vision of modifying world by their ideas. Scalable
entrepreneur manage funds from market and convince peoples in order to invest on their
ideas.
Relationship of ventures with its typologies
Kinds of Topology Lifestyle ventures: These types of business give immediate profits to enterprise. This
venture mostly prefers to work alone. In this, main focus of the lifestyle venture is to earn
the profit and make improvement in its lifestyle. They select business that can reflect
their passion and focused more in doing that they want. Survival ventures: In this types of business are started in order to fulfil basic needs of
family (Chittithaworn and et. al., 2011). These kind of small businesses are internet cafe,
barber store, grocery store and so on. These kinds of venture are mainly start their
business at small scale and earn for their survival or fulfil basic needs.
 Managed growth ventures: Such type of businesses is run through a smart businessman
as they know how to make lots of finance. These persons mainly invest only on those
enterprises where person know that their finance will definitely earn profits and it will not
go waste.
P2 Similarities and Difference between entrepreneurial ventures
Small, large, social, scalable start-ups and large are different types of
entrepreneurial ventures which exit in market. These are various forms of firms which
depend on businessperson and resource availability (Chrisman and et. al., 2012). This
affects on scale of operations and objectives which are set by them in according to sustain
its position in market. Hence, the similarities and differences of different entrepreneurial
ventures which is stated below:
Types of
enterprises
Similarities Differences
Small and
Large
 Both the venture are aimed at
provision of high quality
products to people prevailing
 Large ventures have more funds
than small ventures and thus the
scale of operations of former is
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market place so as to meet their
needs and demands.
greater than that of latter.
 Also, the number of human
resources within large ventures
are more than that within small
ventures.
Social and
Scalable
 Both are aimed at provision of
effective services to people
within society.
 Both the types of ventures
leverage innovation as the key to
provide high quality offerings to
customers and serve them in an
effective manner. This helps in
entailment of extensive
contentment from them.
 The long term vision of both the
types of venture is to inflate the
scope of growth and attain
development in short course of
time.
 Scalable ventures are aimed at
derivation of high satisfaction
from customers to inflate their
profits while social venture seek
to resolve the issues faced by
society at large.
TASK 2
P3 Interpret and assess how small & micro enterprise impact on economy
There are various types of business which are conducted in society. It is divided within
three various parts which are given below: Micro Business: This type of business is mainly having its single owner. In this, total
numbers of employees are working which involve 0-9 owners. These types of businesses
are mostly started by female and young entrepreneurs. In UK with support of regulatory
bodies, near about 5.3 million micro business are running (Micro and small-business
ventures, 2017).
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 Small Business: In this, it is a type of business which initially starts through an specific
person those aim is to gain higher profits. Here, employees range is 0-500 only. Every
new enterprise who begin their business in small scale. These businesses are responsible
in order to create 65% of employment opportunities in past 20 years. Medium Size Business: These companies are divided within small and large businesses.
This types of enterprises are somewhere in between as there is not having official
definition given for this. In this numbers of employees are from 250 to 500.
Impact of economy on micro and small businesses
Management of small as well as micro enterprises are used to conduct a proper research
in order to identify current trends in the market (Goss, 2015). This will help in determining
buyers needs as well as produce products. Mainly, these types of enterprises are divided on the
basis of micro as well as small as per its numbers of employees, size and structure. Major impact
lies due to micro and small sized business are given below:
Local impact: Companies in this sector impact on local locations in a large manner as they focus
on completing demands of citizens only. They mostly target the local customers only at the time
of establishing as well as running their business. In this, they give job opportunities to local
peoples which aid in decreasing unemployment rate.
(Source: Local impact on micro and small enterprises, 2017)
Interpretation: In this above graph, it is interpret by raising of small business it will aid in
decreasing unemployment within the country. Micro level business give job opportunities to
18.9%, small enterprises provide employment to 23.4% population as well as medium company
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Illustration 1: Local impact on micro and small enterprises

provide 29.2% of vacancies. When employment opportunities are created, it implies
empowerment of a proportion of population by provision of training and guidance. This means
that the economy develops as a whole as a result of this.
Regional impact: Both sector of company provide huge impact on societies in an positive and
negative manner (Karlan and Valdivia, 2011). In this, they complete the demands of local people
which reflect on its positive side of micro business. It will provide negative part at the time of
selling services as well as goods at fixed price.
(Source: Regional impact on micro and small enterprises, 2016)
Interpretation: As per above data, there are two different locations mentioned, one is United
Kingdom and other is European Union. As comparison to European Union, the small businesses
in United Kingdom tend to provide more job opportunities to local people. According to graph,
from year 2013 to 2019 more people employed within SME’s pertaining to UK. This implies
significant impact in terms of generation of employment and thereby resultant growth of national
economy.
National impact: In these businesses, small sector are raising at very fast rate. Therefore, earning
power of them also provide influence on nation economy.
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Illustration 2: Regional impact on micro and small enterprises

(Source: National impact on micro and small enterprises, 2016)
Interpretation: As per above graph, it shows gross domestic product rate of UK raise from 1%
to 3.9% at the year 2010 to 2015. This implies that small and micro enterprises have largely
contributed in growth and development of national economy by resolving the issue of
unemployment.
P4 Role of small business in improving growth of social economy after 'Brexit'
Brexit is an impending withdrawal of United Kingdom from European Union. It is used
to consult about the various prospects for withdrawal of both the countries. In order to leave the
European Union, there are 51.9% of people of United Kingdom elected vote on 29 March 2017.
during the final discussion, Prime minister announced an intention of government that United
Kingdom would not to be seek towards the permanent membership of single European market
after leaving European Union (Jones and Rowley, 2011). After the Brexit, small and start- up
business contribute towards the economies through make innovation. The small business firms
help in enhance the economic growth with the help of providing the better employment
opportunities to local people. The start- ups and small businesses develop positive impact on
social economy of country.
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Illustration 3: (Source: National impact on micro and small enterprises,
2016)

For an example- Small firms provide the employment opportunism to local people and
from this they can earn and make improvement in their living standard. Through this, they can
able to purchase things and contribute towards economy of country.
Difference among Start- ups and Small scale business
Start up Small scale business
Start up business needs more money to begin
the different business operations and activities.
These businesses are established so there is not
more requirements of money to operate
business.
It develops own creative as well as innovate
idea or thoughts and also capture the large
market size.
It provides traditional products to consumers.
The main focus of start up business on the fast
development as well as scaling business.
The productivity of small business is limited.
It has aspirations to make large affect and also
objective to disruptive.
These businesses are self content and also have
the fixed boundaries.
Impact of small enterprises on economy of United Kingdom
On the basis of existing market condition of United Kingdom, there are many small size
organisations which operate their business and give contribution towards an economy of country.
In context to this, small businesses are backbone of an economy of United Kingdom and helpful
in developing the jobs (Neck and Greene, 2011). There are some affect of small business firm
on an economy of United Kingdom:
Creating job opportunities- Under this, small business organisations provide its
contribution in develop the more job opportunities for local people. It will helpful in improving
their standard of living and poverty will be removed.
For an example- In UK, there is around 99.3% of private sector business at beginning of
2016 and 99% were small and medium size. The SME provided around 15.7 million jobs to
people. In United Kingdom, there is almost 50% of working population.
Impact on revenue and taxes- It provide the strong affect on develop the many job
vacancies with a economy. It is helpful in generate the income level with in nation because they
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need to pay the taxes. This is having the direct relationship with revenues as well as taxes. In
context to this, if revenue will be enhanced then from this high income level will be enhanced.
For an example- The small size businesses contribute around 47% of revenue to
economy of UK. It helps in expanding the small business at the large scale.
Social and economic development- Small companies are consider as powerhouse of an
economy of United Kingdom. It has been measured that in United Kingdom, there are 5 million
micro and small size organisations. They provide the jobs above 15.2 million job opportunities.
It is helpful in develop the positive affect on United Kingdom economy.
Financial support- If small scale firm will be more in country then it will enhance the
rate of employment (Schaper and et. al., 2014). The government of United Kingdom provide the
funds to small business in order to conduct their business operations and adopt the new
technologies. With the help of this, small firms can conduct its business operations at the large
scale.
For an example- 93% of the financing needs of small size business are met through
informal and internal sources. 3 million of small firms contribute around 50% of industrial
output.
TASK 3
P5 Characteristics, traits and skills of successful entrepreneurs and differentiation with manager
Starting up a venture easy task but entrepreneur faces challenges and they require to have
complete knowledge about market conditions to utilise opportunities and implement innovative
ideas in firm. For this, individual require to have appropriate skills and characteristics to conduct
operations effectively.
Richard Branson and James Dyson are 2 successful businesspersons who have adequate
features to manage resources efficiently. These are characteristics which help entrepreneur to
make success and growth in businesses:- Decision-making and risk taking: Richard Branson and James Dyson have good
judgement making skills which help them to make decisions which are beneficial for
firm. Besides this, they even need to be competent to take challenges and risk which are
related with enlarging business and conduct activities internationally which have large
number of competitors (Storey, 2016).
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 Hard working: Richard Branson and James Dyson are hard working that is they are
committed and focused towards their business. Both entrepreneur are ready to take
initiatives and implement innovative and creative business ideas to execute activities
effectively.
 Motivational: Richard Branson and James Dyson are successful entrepreneur which
define that both are competent and skilled to design system and conduct activities to
timely accomplish objectives. For this, they establish and maintain relations with
employees to make them dedicated and motivated to perform tasks effectively, thereby
complete targets within defined deadline.
Henceforth, Richard Branson and James Dyson are two successful entrepreneur which
have good communication skills, hard working, motivation capabilities, decision-making traits
and risk abilities to conduct business activities and accomplish business objectives. It is
necessary that Joe Woods also have these characteristics to regulate and make venture function
effectively.
Difference between managers and entrepreneurs on the basis of characteristics:-
Characteristics/Skills Manager Entrepreneur
Strategic Vision Manager is required to have
proper vision which helps them
to develop strategies to guide
employees and conduct
business activities in efficient
manner (Unger and et. al.,
2011).
Entrepreneur vision is to
construct creative ideas
which are implemented in
system to conduct
operations and sustain its
position in market.
Communication Manager is required to have
good communication skills to
inform employees about goals
and targets to make them
perform tasks accordingly.
Entrepreneur need to have
proper communication
skills which are used to
provide work and inform
subordinates about business
idea.
Delegation Manager distribute duties and An entrepreneur distributes
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provide tasks to members to
make them work in team,
thereby utilise resources
efficiently.
duties to management, as
he/ she will not be able to
do manage resources
appropriately.
Critical thinking Manager is required to deeply
think while formulating policies
and strategies to direct staff to
conduct operations in respect to
market conditions.
Inventive and innovative
ideas require to be
formulated by
entrepreneur to enhance
company's position and
image in market.
P6 Skills of entrepreneurs which shows entrepreneurial motivation and mindset
Entrepreneurial personality plays important role in development of enterprises. It is
necessary that individual have appropriate traits, skills and personality to execute business and
make success in future time (Welter, 2011). Along this, they even require to have adequate
characteristics and capabilities to timely achieve business objectives. For assessment about
various traits that an entrepreneur require to have to make success are acknowledged through big
five model. Thus, these are five elements which determine motivation and mindset of
entrepreneur are stated below:
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Illustration 4: Five types of personality
(Source: Five types of personality, 2017)1. Openness to experience: This is essential feature which entrepreneur require to have for
growth and success of business. For this, they require to have intellectual thinking, ability
to frame creative and innovative business ideas to improve position and reputation in
market in respect to rival firm. Besides this, businessperson require to be ready to
experience and learn new things by making improvement and alterations in system to
conduct operations in according to utilise market opportunities (Aspects of
Entrepreneurial personality, 2017). Under this, openness to experience enhances
motivation as well as mindset of an entrepreneur as it helps in think the new and
innovative ideas regarding the business. From this, entrepreneur finds the effective or
better ways to make improvement in position of its business. Conscientiousness: This personality specifies that entrepreneur require to be efficient
and effective to manage resources and attain business objectives. It is necessary that they
are self-conscious and conduct meeting to provide information to employees about
targets and goals to make them function accordingly. If an entrepreneur will have the
sufficient or required man power then an entrepreneur will be motivated and focus on
attaining the specific aims as well as objectives.
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 Extraversion: It is another trait which defines that entrepreneur is required to be
energetic to execute work effectively. They are required to be social so that they are able
to promote information about company's value and image in market. Along this, they
even require to have capability to construct relations with people which are important for
organisation functionality. It is necessary that an entrepreneur should able to talk with the
other person and develop the better relations with them. It helps in enhance the mindset
of an entrepreneur for conducting the activities in an effective or efficient manner. Agreeableness: This trait defines that entrepreneur require to be good in nature which
help them to build team and provide them cooperative business environment. Along this,
they even require to be trustworthy towards employees. It is necessary that members
believe them which make them dedicated and perform tasks properly. An entrepreneur
should be coordinative and able to develop a team. If the team members will be better
and focus on attaining the set aims then through this the motivation level of entrepreneur
will be enhanced and start to think about conducting its business operations at large scale.
 Neuroticism: This tactic defines that individual is required to be calm and focussed to
make members function in team (Wheelen and Hunger, 2011). It is necessary for
entrepreneur to become successful that they have emotional stability to achieve and
complete work timely with help of efficient team. If entrepreneur will be focused then it
will develop positive impact on the mindset and motivation. Through this, it can able to
develop the better objectives and attain them in specific period of time.
Joe Woods require to have complete knowledge about big five model which help them to
conduct business operations effectively and accomplish objectives and targets. It is necessary
that he have willingness to experience and enhance learning. Along this, he even require to have
personality traits which are conscientiousness, extraversion, agreeableness and neuroticism to
make changes in system according to market.
TASK 4
P7 Factors which hinder or foster entrepreneurship
Entrepreneurship is an essential element that mainly depends on their skills and
capabilities of a person. This will help in meeting educational details, personal experiences,
background and many more. Some of the aspects which have a significant impact upon
entrepreneurship are explained as under:-
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 Family Background: This is an essential factor as it provides impact on thinking of
entrepreneur which is different from another. It has high influence on decision making of
an entrepreneur. James Dyson’s father was a teacher but he died when Dyson was just of
9 years. Further, his mother was also not of strong background. This hindered
entrepreneurship for him but his zeal to become an entrepreneur led him to success in
later course of life. In context of Richard Branson, his father was a barrister while his
mother was a flight attendant. This fostered entrepreneurship for him as his parents had a
strong professional background. Social Network: It is very important element as it provides direct influence on
community and communication system. Social networking allows both entrepreneurs,
Richard Branson and James Dyson to develop healthy relations with other corporate
persons so as to enrich their personalities and enhance their external knowledgebase.
 Education: In this, education of a person has huge impact on their thoughts and opinions.
Education aids entrepreneur in increasing their knowledge as per their studies which help
in making creative or new products and services in an effective manner. The same can be
seen in the case of Richard Branson and James Dyson who were keen on getting educated
and later became famous entrepreneurs by leverage their knowledge in a practical
manner.
Therefore, entrepreneur rely on its social network, family background, education and
style that how an individual person will make decisions according to grab effective opportunities.
Hence, individual person belongs to healthy background of family it would aid them in making
proper decisions. While the worst and negative background of the same, would lead to take worst
decision for an enterprise which discourages its workers.
CONCLUSION
It has been comprehended from this given assignment that small firms play important
role to develop and enhance economy of nation. There are different forms of ventures exists such
as small, scalable-start-ups, social and large, which have relation and various topologies. In UK,
Brexit is situation which require that decisions are made by businessperson to utilise
opportunities and conduct activities effectively. It is necessary that micro, small and medium
sized business and their impact are acknowledged by executive to make appropriate decisions
which are beneficial for performance of company. An entrepreneur requires appropriate skills,
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traits and personality to design system and make success. For this, Big five model is appropriate
tool which help individual to have information about different traits which makes person
succeed. Their background and experience are two factors which affect on entrepreneurship that
is hinder and foster it.
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