Brexit's Economic Impact Analysis

This assignment requires a detailed analysis of the economic impact of Brexit. Students must examine the effects of Brexit on various sectors of the UK economy, considering factors such as trade, investment, and employment. The analysis should draw upon provided sources and research to present a comprehensive understanding of Brexit's economic consequences.

Entrepreneurship and Small
Business Management

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1. Different types of entrepreneurial ventures and relation with typology of entrepreneurship
.....................................................................................................................................................1
P2. Similarities and differences between entrepreneurial ventures............................................2
P3 Impact of micro and small businesses on the economy.........................................................4
P4 Contribution of small business enterprises to social economy after Brexit...........................6
PART 2............................................................................................................................................8
P5 Characteristics, traits and skills of successful entrepreneurs.................................................8
P6 Entrepreneurial personality striking their state of mind and motivation .............................9
P7 Role of background and past experiences in fostering or hindering entrepreneurship..........9
CONCLUSION ............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Entrepreneurship can be stated as process in which new business is being started by the
help of innovative ideas. In simple words, the main focus is on generating the revenue by taking
risk within the marketplace. Idea modification within business process, managing it and along
with that, continuous development is called factors of entrepreneurship. Mission and vision of
entrepreneurs is somewhat different in nature (Baum, Frese and Baron, 2014). There is high risk
involved within the process which in turn can put a positive impact on the growth of economy.
There are numbers of factors which are being discussed within this report like various kinds of
ventures inter-relating with kinds of typologies of entrepreneurship. In addition, there are several
entrepreneurship styles along with its similarities and differences. Besides this, impact of the
small business on the economic development will also be observed.
TASK 1
P1. Different types of entrepreneurial ventures and relation with typology of entrepreneurship
Entrepreneurship: Entrepreneur can be stated as an individual who has stepped into the
market with some kind of motive and thus running the business. The major and common motive
is to earn profit and contribute the revenue which is being generated for the social and economic
purposes. Plans are being formulated and thus implemented in order to earn handsome amount of
profit. There are various kind of activities which are being executed like manufacturing up of
products and services along with giving out maximum level of satisfaction. Their main focus is
on analysing the actual needs and wants of the customer and thus producing the goods so that
needs can be fulfilled (Bhachu, 2017).
Difference between Entrepreneur and Intrapreneur:
Basis Entrepreneur Intrapreneur
Meaning This kind of person mainly
sets up their own business by
the help of new idea and
concept.
Intrapreneur can be stated as
an employee of the company
who has the charge of taking
the innovation within products
and services.
Approach Spontaneous Recuperative
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Resources Own resources are used Company provides the
resources
Capital Self raised Financed by company.
Enterprise Newly Established Existing One
Dependency Independent Dependent
There are various entrepreneurial ventures which are present within the marketplace and
those are described below:
Small business entrepreneurship: In modern scenario, there are new businesses which
are being formed for earning the livelihood. In UK, there are millions of individual who owns a
small business and these kind of businesses are contributing in reducing the unemployment.
Main focus of this kind of business is earning the livelihood and thus getting secured in financial
terms. Latest technologies can be adopted by this kind of style for maximising the profit ratios.
Typology which is being related to this kind of entrepreneurship style is earning the livelihood
and thus getting financially secured.
Scaleable Start-Up Entrepreneurship: In this kind of entrepreneurship style, main focus
is on maximising the profit and thus keeping up the contribution on the economic and social
factors. There are various small scale businesses which depend on the business and thus expand
area of operations. But this needs high amount of fund which can only be arranged with
stakeholders and investors (Burrows, 2015). Hence, entrepreneur mainly tries to seek out for the
investors who have the same mind-set. Typology which is being related to this kind of
entrepreneurship style is expansion of business for generating maximum amount of revenue.
Large organisational Entrepreneurship: Main focus is on giving out tough competition
to other companies who are dealing in similar kind of products. This can be done with the help of
latest technology which can be adopted and along with that conducting the operations in better
and effective manner. Typology which can be related to this kind of style is obtaining
sustainability within the economy of respective country.
Social Entrepreneurship: These kind of entrepreneurial style is being formulated with
the motive of uplifting the economy of country and thus finding out solutions for the social
issues. With this motive, products and services are being manufactured and thus serve to the
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people at reasonable prices. This motive can be stated as typology which can be related to this
kind of social entrepreneurship (Butler, 2012).
There are various kind of ventures which are being described below:
Lifestyle Ventures:
It is a little firm that oversee self-rule, autonomy and control to its proprietor. Focal points of this
wander is to catching substantial offer and appropriate employments of assets. It gives
adaptability in meeting, places and other. Their fundamental point is to gain cash for their living
and win work by turning into a business person.
Serial Entrepreneur Ventures:
These are the business visionaries which build up a wander and after it effective running of
business, they proceed onward to next wander. It incorporates diverse undertaking who exist
with creative arrangement and works their business capacities and exercises in imaginative way.
In everyday exercises and working of business substance, such business people take their full
endeavours. Primary point of this wander is to make least benefit.
Male Venture:
This kind of venture which mainly depend upon the abilities and power of men and those kind of
business entity which are being managed and thus are monitored by the males only. This kind of
venture has about 49% of share within marketplace.
Female Ventures:
This kind of venture is all about abilities and capacity of the female and those are being managed
by women only and thus they have about 51% of the market share.
P2. Similarities and differences between entrepreneurial ventures
There are number of differences along with some kind of similarities within the
entrepreneurship ventures. Various kind of departments with some basis on which similarities
and differences which will be judged and major of them are described below:
Lifestyle Ventures or the business
Similarities
1. Using of innovative and creative
thoughts in order to establish process
of business along with conduction of
operations.
Serial Entrepreneurs ventures
Similarities
1. Major similarity which can be stated as
applying innovative ideas and creative
operations within the business so that
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2. Recruitment of highly skilled workers
which is being done so that various
kind of objectives can be attained in
allocated period of time (Dacin, Dacin
and Tracey, 2011).
3. Priority of the business is obtaining
growth and success for attracting large
number of customers.
operations can be conducted.
2. Need of high skilled employees is
similar as both kind of entrepreneurs
need to conduct the business and attain
objectives.
3. There are certain objectives of the
company which are same in nature as
both of them believe in attracting the
customers.
Differences
1. Establishment of business is being done
with purpose of developing the lifestyle
within economic and social terms.
2. Conduction of operations with the
motive of long running and keeping
power in single body is the key to
success.
Differences
1. Company is being established with the
motive of implementation of ideas
which are innovative and creative and
thus growth can be obtained. After
growth and success, transferring up of
powers is being done into other hands.
2. Handling up of roles and
responsibilities is not being done for
long period of time. Powers are being
transferred to another person who can
operate the business in effective
manner.
Female Entrepreneur Business
Similarities
1. Priority of the business is on getting
growth and success of the firm while
foundation.
2. Analysation of Market is being done
and determination of needs and wants
Male Entrepreneur Business
Similarities
1. Establishment of business is being done
with the motive of attaining the
objectives in order to generate the
revenue (George and Bock, 2011).
2. There are various kind of products and
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of customers so that they can be
sustained for long period of time.
services which are being manufactured
according to needs and wants.
3. Both of them have the same need and
that is acquiring market share.
Differences
 When it comes to confidence, female
entrepreneurs are low specially while
starting up of business.
 Various kind of skills which are being
utilised to make better decisions.
 Effective channel of communication
are being established by this kind of
entrepreneur.
Differences
 Better channel of communication are
being utilised.
 High skills and abilities are being
observed when business is on the urge
of starting.
Difference between social and private Enterprise:
Basis of Comparison Social Enterprise Private Enterprise
Meaning Non-governmental organisation
formed by ordinary independent
citizens.
Formed for earning profits and that
is done by selling products and
services.
Area of Operations Big Can be Big or modest
Objectives Welfare of the society and
development.
Earning profits from the products
and services.
M1 Demonstrate how different range of entrepreneurial venture contribute in both public and
private sector
There are large number of start-ups in UK that are still termed as small-business. These
generally comes under private sector as they earn profit only to support their families. There are
large numbers of small business which has acquired high market share and that is about 86%.
Large entrepreneurship plays crucial role in economic development of respective country. Social
entrepreneurship aims at making society a better place to live.
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D1 Critically examine the development, growth and scope of entrepreneurship venture
According to Stroke (2014), all entrepreneurial venture somehow contributing in the
growth and development of particular country. For example: There are near about 5.7 million
small-business in UK. They make up almost 80% of all companies and employ 40% of all non-
governmental workers. Large companies are contributing near 30% towards the country GDP.
Moreover entrepreneurial ventures like serial and social aims at improving the living condition
of country and makes it a better to live.
P3 Impact of micro and small businesses on the economy
There are various kind of factors which are involved in the current situation and thus
crucial role is being played by micro and small kind of business. Economy of the country is
being affected by number of elements and that impact can be done in positive and negative way.
Various factors can be stated as GDP rate, Export and Import rate, Unemployment and many
others (Grimaldi and et. al., 2011).
In UK, records of 2016 states that there are about 6.4 million small business which are
running in successful manner. About 94% of the business are being run and operated on the
small scale level and thus have been contributing in successful manner as well for the
economical development of country.
There is no proper index which is being formulated and it has been classified along with
formulation of right indexation which can be bought for business process. There are number of
factors which are present and are much more complex in nature are mentioned below: Micro Business: Principle reason for existing is producing income alongside contributing
in conservative and social factors. This sort of business is directed on little scale and get
secured in monetary terms. There are approx 10-15 staff individuals and therefore
turnover is about $2 million. Principle motivation behind this enterprise style is
producing the most extreme measure of income for development and success (Hitt and et.
al., 2011). This sort of business is significantly as Sole Proprietorship because of less
financing by single individual. There are number of zones from which financing
originates from like individual investment funds, little credit of banks. It can create 40%
of the jobs in the country. It is also helpful in increasing employment. Small Business: This sort of business is little in nature however is high when contrasted
with small scale level business. This is the real distinction between little scale and smaller
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scale level business. This sort of business mostly contains around 50 workers and has
income of around 10 million dollars. They can directly create approximately 60-80 % of
jobs in many countries. Thus it can create unique image in minds of all nation.
 Medium Business: In this sort of business, it is expansive in nature when contrasted with
miniaturized scale and little scale business and for that high measure of reserve is being
required for foundation. This sort of business have around 250 workers and their turnover
is around 50 million dollars. Through medium industries it can create approximately 70%
of the jobs in the country.
(Source: Geographical impact, 2017)
There are number of economies which has direct impact on the SME'S: International and National Area: There are various kind of effects for the small
medium company on national area and thus they mainly provide help in creating up of
economy by implementation of large number of business functions and thus it can
mainly provide the number of jobs. Regional Area: There is the impact on small business which in turn can provide various
kind of advantages along with drawbacks for producing the goods and services. In this
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kind of area, there are certain needs of customers which needs to be fulfilled in better
and effective manner.
 Local Area: In these kind of areas, there is high impact on the small and medium
companies. There are various kind of roles and responsibilities which has to be provided
for the unemployed person and thus it can create large impact on growth and
development of economy.
P4 Contribution of small business enterprises to social economy after Brexit
By the year of 2016, exit was taken up by Britishers from the European Trade Union and
this kind of activity is called as Brexit. There were about half of the trade union who voted
against Britain to make them l;eave from the trade union. British Govt. mainly conjured the
article 50th of the settlement within the European Trade Union on 29th March, 2017 in order to
influence the UK to leave EU on 29th march 2019. There are various kind of policies which are
being formulated but this process took time (Economic impact of Brexit. 2016.). Along with this,
private and public sector slowly and gradually adopted the rules and regulations. There are
benefits as well as limitations which are being impacted by the small scale business on the
economical growth of country. UK Govt. made some changes specially after Brexit which took
place and these kind of changes took time. Motivation was being provided to the entrepreneurs
and thus they took the steps which provided various kind of benefits for Britain as well. Major
modifications which were being done are described below:
Wealth Distribution: This can be stated as highly necessary for UK in order to improve
the economical growth which every kind of single company whether its large or small make the
contribution. There was a survey which is being done in the year of 2015 by Govt. and thus it
has been concluded that approx 48% is being provided among the high class society. So it is
highly essential for country's development which can even small business also contributes in
effective manner.
Turnovers: This kind of concept can be understood by each and every kind of activity
which is being conducted for generating the revenue on annual basis (Martin, McNally and Kay,
2013). In a survey it was being found out that the medium and small size business of UK has
tremendous amount of turnover for the economy and that was about 1.7 trillion dollars. From this
survey it is clear that the small scale business are highly contributing within the economy of
country along with social factors.
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Infrastructure: After taking place of Brexit, many of the investors who participated in
the development of infrastructure of the company of country. There are same kind of objectives
which investors has in their mind just like entrepreneurs has, so they started making the
investment at rapid speed. This provide assistance to the entrepreneurs in building up of an
effective structure. This in turn will attract the labours towards the manufacturing units where
they can get employment.
Illustration 1: Economical Impact of Brexit
(Source: Brexit Impact on Economy, 2018)
At the starting stages, it was found that the contribution is being only done by the rich class
people but gradually after time, common people also started contributing towards the growth of
country and thus attaining growth and success.
M2 Difference between small, medium and large business
Small Business Medium Business Large Business
 Small-business are
normally operated in
local economies.
 15-50 employees
works with small-
 Such type of businesses
run with an aim of
maximising profits and
revenues.
 They give employment
 The reason for their
existence is to gain
high competitive edge
over other rivals
 More than 500 workers
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business.
 Such type of businesses
have the flexibility to
modify their existing
product as per
customer requirement
and needs.
to near about 250
employees.
 Medium enterprises
also alter product or
services according to
buyers requirement but
they are not doing it on
frequent basis.
are working with large
companies
 Large firms do not
modify their product or
services frequently.
D2 Critically examining the impact of small business on different levels of economy
According to Brooklyn (2014), It is clear that there is highly contribution of the small
scale business for the development of United Kingdom and its economy. There are various kind
of actions which are making impact on the mindset of people who are willing to do the business
or had the unique idea for conducting one.
PART 2
P5 Characteristics, traits and skills of successful entrepreneurs
In order to become a successful entrepreneur it is needed to have abilities and skills that
re unique in nature. There are two successful entrepreneurs named Ben Corrigan and Jonny Plein
who are the founding father of “Pouch” which is all about online shopping site where the
customers can purchase items at very reasonable rates. This company was being established in
2016 and since then has made strong footprints within market share. Another successful example
which can be taken of “Influencer” which was founded by Ben Jefferies in the year of 2015.
They both have the various kind of features, skills and traits which are being described below: Hard Workers: Both of the entrepreneurs has always focused on the hard working and
thus they set example for many of the people who wanted to be like them (Santos, 2012).
In order to start up business, hard work is being needed and lesson can be taken of them. Money Management:There are various kind of limited resources which are mainly
possessed by them and because of that they had to make better planning and other
strategies in order to have expected outcomes (Sarasvathy and Venkataraman, 2011).
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Financial management is a highly essential task for an organisation and thus resources
are being allocated in effective and optimum manner. Successful Planner: A person can only become successful when there is presence of
effective planning and strategies in order to produce and enhance profit ratios which are
essential. Forecasting of the demand is being done and plans are being structured in
order to have better result of hard working.
Skills and Traits of both Entrepreneurs Chance Grabber: There are type of problems which are being faced by them and
experience made them tackling up the situation in better manner. This kind of tackling
gives out the experience in better and effective mode.
 Determination: For an entrepreneur this kind of factor is highly essential and thus both of
them had this factor within them. This is very clear from the success they got from the
business (Schaltegger and Wagner, 2011). At the starting stages, this kind of factor is
highly essential and thus they faced many kind of challenges and made effective
strategies with resolution.
Company can easily receive funds from various sources. They are:
Banks: They can receive funds from banks. It is a useful method
Friends: They can take funds from friends. It is an effective method.
Credit card: Firm can receive funds from credit card.
It can face many problems related to finance as well as various laws. Govt creates various
rules thus it has to follow various laws so that it can easily survive in market.
There are various motivators such as money and self employed. Through this they can
easily manage all resources in the company.
M3 Examining lines of argument related to entrepreneurial characteristic
There are various characteristic of successful entrepreneurs. They work hare towards attainment
of their goals. Their positive characteristic reflects on their personality in positive way. It fosters
the process of entrepreneurship. But on the other hand, negative experience of an entrepreneur
hinders the process of entrepreneurship.
D3 Analyse the skills and motivational driver of successful entrepreneurs
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 Risk Takers:For making the business operate in better manner, involvement of high risk
is there but both of them took this and gave their all for this business. There was high
level of risk involved at the initial stages and to deal with them they adopted various
kind of tools and techniques and by this they were able to gain the profit from the
operations of business.
 Communication Skills: This sort of aptitudes are very basic and subsequently them two
use this sort of ability and handle the circumstance in better and powerful way.
P6 Entrepreneurial personality striking their state of mind and motivation
OCEAN approach can be stated as concept which is being highly utilised by the HR
sector specially at the time of recruitment. This in turn enables the company to analyse the skills
and abilities and thus give them work according to that. There are five kind of sections which are
being highly utilised for personality development and those are openness, Conscientiousness,
Extroversion, Agreeableness and Neuroticism and they are described below: Openness: This kind of factor can be stated as one of the basic component for a business
person as they have the curiosity of examining the new elements in order to have clear
vision where they wanted to be. Every firm can use this so that it can tell theort ideas to
all persons and they can easily interact with all persons. Conscientiousness: This kind of factor can be stated as usual element which is highly
utilised by an entrepreneur with the objective of bringing sustainability along with
upliftment of social and economical factors (Shane, 2012). Thus company can perfirm
many social activities and thsu it can directly help poor persons Thus it can create
unique image. Extroversion: This kind of factor helps out in forecasting future before the planning
process for having better outcomes. Company can forecasts about future and can create
various plans and policies so that it can easily solve all issues and problems related to
future. Thus it can easily achieve goals. Agreeableness: In this kind of method, inviting condition is being formulated for the
business people so that working environment can be made smooth and comfortable. In
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this company can agree with rules and regulations so that they can easily maintain
unique and distinct image in market. Thus it can earn more revenues.
 Neuroticism:This kind of approach is highly utilised for influencing the entrepreneurs
which in turn can affect the level of motivation. Through this company can motivate
staff members with extra incentives and firm can also motivate staff members so that
they can give new and better ideas to all people. Hence they can give unique ideas.
P7 Role of background and past experiences in fostering or hindering entrepreneurship
It is highly essential for every kind of person to learn from the things which they have
deal in past. It is has been found out that there are less number of successful entrepreneurs
among all the businessman (Szirmai, Naudé and Goedhuys, 2011). There are many small
children who suffers from the poverty and thus they had to beg for food. This kind of scenario
made her serve those kind of people who need help and they do not have shelter and food to live
on. Besides this, she did not had a clear vision of what to do with her life and neither her parents
or any relatives gave support due to bad conditions.
There are various past experiences which can directly help the person to become
entrepreneur. The person has taken education from a good and reputed schools and students
subject that motivates the to become entrepreneur. From the school level they want to become an
entrepreneur. At college level also they had taken that subject which helps them to become
entrepreneur. Through these experiences it directly foster them to become entrepreneur.
Sometimes background also helps person to become entrepreneur. If person's father is
entrepreneur then they can motivate that person to become entrepreneur.
Various type of risks can be understood by the following points:
 Financial risk: This type of risk is related with financing which consists risk included in
every type of financial transactions, company loans in risk of default is involve under
this. This type of risk can be reduce by analyse various elements before invest in a
project.
 Economic risk: It is related with situation such as exchanges rate. Political stability and
government regulation affect investment especially in a foreign country. Company can
deal with it by examine the various factor exist and operate in external business
environment.
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 Natural risk: A natural hazard is known a major event that results from natural process of
the earth. Floods, hurricanes, tsunamis and volcanic eruptions all are example of natural
risk. This type of risk can be deal by maintain the temperature of earth.
 Human risk: This type of risk can be deal by improve safety and by reduce legal risks.
M4 Link between entrepreneurial characteristics & influence of experience on entrepreneurs
Impact of personal background and experience of successful entrepreneur &
entrepreneurial characteristics are highly linked with each other. Background and experience of
an entrepreneur matters a lot in their success. If background of an individual is good, it will help
in fostering entrepreneurship among them. Characteristics of entrepreneur are developed in them
from their childhood. Their experience helps them in establishing an enterprise and make it
successful.
D4 Critically evaluate how experience and background influence entrepreneurs
According to Frannk and Flippo, (2014) there are various kind of situations which in turn
can reduce the profit of company and thus can hamper up the situations along with operations
within same sector, social status, gender and many more. Example can be taken up of Oprah
Winfrey whose background was not much strong and better in-spite of this she became a
successful leader.
CONCLUSION
From the above report, it can be concluded that entrepreneurship plays crucial role in in
the development of economical and social factor of respective country. There are number of
factors which are being adopted in form of tools and techniques in order to attain aims and
objectives in better and effective manner.
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REFERENCES
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Routledge.
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Butler, J. S., 2012. Entrepreneurship and self-help among black Americans: A reconsideration of
race and economics. SUNY Press.
Dacin, M. T., Dacin, P. A. and Tracey, P., 2011. Social entrepreneurship: A critique and future
directions. Organization science. 22(5). pp.1203-1213.
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Grimaldi, R. and et. al., 2011. 30 years after Bayh–Dole: Reassessing academic
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Economic impact of Brexit. 2016. [Online]. Available through.
<https://woodfordfunds.com/economic-impact-brexit-report/>.
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