Impact of Micro and Small Businesses on UK Economy

This assignment delves into the significance of micro and small businesses in the UK economy, highlighting their economic contributions, statistics, and various types of entrepreneurial ventures. The text discusses the role of these businesses in job creation, innovation, and entrepreneurship, while also providing key statistics and illustrations to support its claims.

ENTREPRENEURSHIP

Table of Contents
INTRODUCTION...........................................................................................................................1
P1Examine different types of entrepreneurial ventures and explain how they relate to the
typology of entrepreneurship......................................................................................................1
P2 Explore the similarities and differences between entrepreneurial venture ...........................2
P3. Data and statistics to illustrate how micro and small businesses impact on the economy. . .3
P4. Importance of small businesses and business start-ups to the growth of the social
economy......................................................................................................................................5
P5.Characteristics traits and skills of successful entrepreneurs. ..............................................7
P6 Entrepreneurial personality reflect entrepreneurial motivation and mindset ........................8
P7 Background and experience can hinder or foster entrepreneurship.......................................9
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................11

INTRODUCTION
Entrepreneurship defines as a word which posses a whole business in itself. It act as a
proper business in which transaction of money works to get maximum profit from market. It
creates a business in market which build and place with an existence to earn revenue from it.
Business enters in market to solve problem of customer (Kirzner, 2015). It creates a need in
market and focus on customer need and wants by which it attracts thousand of consumer to earn
profit from it. Customers are the king in market and fulfilling their wish is the main purpose of
an entrepreneurship.
Entrepreneurship can be define as solving big problems, It can be solve by social change,
creating an innovative merchandise to offer in market, a solution to give a new change in life etc.
Entrepreneur enters in market with innovative ideas and fulfil the existence need in market by
offer its product.
LO1
P1Examine different types of entrepreneurial ventures and explain how they relate to the
typology of entrepreneurship
The forces of demand and supply of a good or services in market showcase a proper
scenario for an individual or a group to launch product. An entrepreneur defines as an individual
who focus on market and finds the demand of a particular product to start and runs a business
with limited resources and full-flesh planning (Dees, 2017). It is responsible for all risk facing in
market as to achieve a desire objective from market. There are four different type of
entrepreneurship which is as follows:-
Small Business Entrepreneurship
The new innovation in market with an increase in number by passing every single day of
entrepreneurs and start-ups in the United States are still small businesses told or to run market.
Small businesses can be of different type such as grocery stores, hairdressers, consultants, travel
agents, internet commerce, carpenters, etc. Small business entrepreneur can be anyone who
focus in maintaining or running his/her own business and hire local employees or family for the
process of money transaction and other work. For example: Funeral care etc.
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Scalable Start-up Entrepreneurship
Scalable start-ups entrepreneurs starts a company knowing from day one as to get more
profit from their vision could give an innovation for a change in the world. Attracting
investment from different part and hiring best and brightest person across the world in the main
task of it. It focus on market as to get more profit from it. For example: Ma Baker.
Large Company Entrepreneurship
Large companies have many different stages of growth and even many different
department to understand the work process (Kuratko, 2016). Mostly grow through sustainability
in market as to achieve a level by its innovation, offering new products by finding exact need in
market. Changes in the taste of a consumer, adaptation of new technology, legislation, etc. can
create pressure for more disruptive innovation – requiring large. For example: Google and
facebook.
Social Entrepreneurship
Social entrepreneurs are innovators who focus on creating products and services that
involves in market to solve social needs and problems. It make the world a better place, not to
take market share or to create to wealth for the founders as to get more profit from every corner.
These can be treated as for-profit, or hybrid.For example: NHS ETC.
Typology of technology which focus in improving market culture and
based entrepreneurs as to adopt different innovation in getting good growth (Burns, 2016). A
model which has worked with an experience and based on previous occupational background to
examine or finding previous research into an organizational backgrounds from which technical
entrepreneurs focus and improve it with proper process and technologies for future stability in
market. These all entrepreneurship which has discussed are totally dependent to Typology as it
focuses on new technology to move forward in a proper manner.
Classification of entrepreneurial typologies:
Female entrepreneur: When any female established its own business for facilitating innovative
goods or services to society. They are usually more creative in comparision to other one like
Emma Kane, CEO of Red leaf communication.
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Serial entrepreneur: These are the most creative as well as always ready to take challenges and
risk. This developed new goods into all area so that needs of customers can be accomplished
effectually.
P2 Explore the similarities and differences between entrepreneurial venture
To find out the differences and similarities between entrepreneurial venture then it is
almost same in everything, which can posses to run towards growth. Taking risk is much
common in both entrepreneurs and small venture, but these risk has different level in both
organization which is as follows:-
Financial goals
Financial goal is the most favourable aim of every organization or an entrepreneur by
building a profitable business that can pay them regular income which focus on working capital
in facing daily expenses properly. This works in small ventures as to get a daily income. In
contrast, the high-impact entrepreneur typically expects to achieve a great growth by building a
goodwill in market and focus in maintaining every part of business in a proper way for long term
stability.
Risk/reward profiles
In short spam of time the small business entrepreneur typically face challenges and
handle a business opportunity as to fulfil all expenses by potential to work and generate a decent
living in the form of operating cash flow, which helps in a relatively short period of time
(Storey, 2016). In contrast, the high-impact entrepreneur is primarily maintain a stability in
market and focused on mid-term exit value of business which showcase worth in market and
help in facing operating cost.
Financing strategies
Every new day, the financial stability needs to be more stable in both the business as it
lower down the risk and focus on income potential. It decreased wealth creation but focus on
potential inevitably which leads the small business entrepreneur to limit ownership dilution.
In contrast, the high-impact entrepreneur focus on asset-based lenders, which develop business
on greater scale with goodwill in market. It focus on wealth creation and suffer high risk
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uncertainty while investing money in different areas of business to get a perceived value in
market.
Employee recruitment and compensation
Stability in a business is much important as to get success towards growth of a business.
It clarifies all aspect of job stability in big business as it provide better facility and give more
scope to work under it (Etzkowitz and Zhou 2017).
In contrast, Job stability in small business is much greater than job stability in young or
even more established high impact businesses. In small businesses employee focus on personal
growth and work in the given condition for a for a regular pay-check and job security, in return
for which he/she is willing to sacrifice upward mobility.
LO2
P3. Data and statistics to illustrate how micro and small businesses impact on the economy
Small businesses plays a vital role and function as a backbone of the UK economy. It
help in driving growth which directly impact on income level of economy. New markets and
creating jobs are the role play by small businesses in economy which directly impact on future
development. To get ahead of the pack, these small businesses encourage competition and bring
fresh ideas to get a new level in market. Simply put, small businesses are good for UK as
impacting on economy from every section of society (Zahra and George, 2017).
Growth in the sector of micro business is directly gives a growth in self-employment
and “micro businesses”. It help in making a business wealthy and directly give benefit to
economy as well as the government of UK. Leading micro business deal with fewer than
ten staff, which is not the drag on national productivity in a large manner.
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Interpretation:- The above statistics showcase the growth sector of different sectors in
economy. As number of employees has increase to 14.8%, micro business has reached a level of
18.9%, small business at 23% and Medium enterprise has covered 29% . The impact on different
sector in economy defines a greater improvement in country, as growth in market directly
function as improvement in economy.
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Illustration 1: Impact of Micro and small businesses upon UK economy
Sources: Brexit’s impact on small businesses: the experts may be spot on
after all. 2019.

Interpretation:- The above statistics reflects the difference in scenario of businesses as
micro has covered 87% , and small businesses reflects 9.7% growth in 2019. The statistics focus
on UK economy which has extended in a vast manner and achieve a new level in market.
SMEs play a important role in employing group crosswise the nation. Small business
contributes over 69.7 % in employing the citizenry in private sector. On an overall it can be
understood that percentage of private sector employment is more in SMEs.
The Enterprise Research Centre which worked in finding the proper situation of economy and
has hit back at suggestions, that a lack of broad expertise in small organisations including micro
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Illustration 2: Impact of Micro and small businesses, 2019
(Source: Impact of Micro and small businesses, 2019)
Illustration 3: Key Small
Business Statistics - June 2016
Source:Key Small Business Statistics - June 2016

level business in UK economy leaves them having to spend time on tasks to fulfil it in proper
way, in which they cannot hope to be efficient and effective in working condition and, reducing
how much they can produce ( Burns, and Dewhurst 2016). A larger business that brings together
to get business ahead of the pack specialists in a host of disciplines should not suffer the same
problem as it produce every possible product in an efficient and effective manner.
P4. Importance of small businesses and business start-ups to the growth of the social economy.
Social economy mentioned to the relation between economy and social behaviour. It
examine how social standard and morals influence the behaviour of user (Hitt and Duane Ireland,
2017). Small businesses and start-ups are the business which function as a small transaction
between buyers and sellers in which an exchange of money take place to get growth in economy
(Hitt and Duane Ireland, 2017). The growth took place in a way to tackle every situation and kill
the competition in finding out the achievement of a business as a whole (Burns, and Dewhurst,
2016). There are different benefits from small businesses and start-ups which showcase a change
in social economy which is as follows:-
Identity of community-
Charm in its own community by giving a push in small businesses and start-ups has
come-up in marketplace. Mom-and-pop shop, local CPA and dog grooming business, become a
unique way of earning money and focus on growth of every sector. At present time coffee shop,
yoga studio and beyond, small businesses contribute to a community’s identity.
Community Involvement-
Small business owners are a vital part of the communities in which they live and work to
focus on growth of an economy. These small businesses directly impact their neighbours by
taking small decisions on taking improvement in existence. local small business entrepreneurs
tend to be involved in the community as to get relation with improvement in business.
Community Health
Involvement in the local community to create a unique identity and being involved
locally as to get business in perfect manner, small business owners help to build a sense of
community (Burns and Dewhurst, 2016) It help community socially and work along with every
section of society. Their businesses tend to be people businesses and focus on maintaining
personal relationships with their customers.
Environmental Benefits
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Increased productivity and innovation, Improved ability to compete for lobar, Stronger
retail sales and many more aspect which directly completes by involving of small business in
society as it creates a awareness and give efforts in applying on it. Environmental benefits define
as to get more involvement in society welfare which can improved by the involvement of every
section of society.
Increasing the Tax Base
Taxes plays an important role for an economy, local residents shop which opens stores
nearby at small businesses within their communities (Cooper and Folta, 2017). These Mom-and-
Pop stores are highly beneficial as their tax dollars submitted within the improvement of local
economy. These taxes are improving community as a result.
Local Jobs
Job creators play a vital role in an economy and small businesses are the most important
part of an economy. Supporting small businesses helps every community in direct or indirect
manner by creating jobs for nearby students or for local people. It helps in identifying the
balance of an economy in different perspective manner.
P5.Characteristics traits and skills of successful entrepreneurs.
Businesses is all about getting the knowledge of a market and function as a unique
perspective to attract thousand other people in an appropriate manner. It regulates all business in
a manner to maximize profit on its own (Read and et. al., 2016). In this report the two famous
personality will become the focus point which is as follows:-
Bill gates, this name has covered a big entrepreneur and businessman who come-up with
an innovation as the world's largest software business. The entrepreneur has vital role in the
growth of an economy as it function as the most prominent part to inspire new generation as a
whole. Some important characteristics traits of Bill gates which is as follows:-
Bill gates characteristics, traits and skills:
 Bill gates has Impeccable pattern recognition which defines as a perfect identification of
pattern and showcase a great personality in terms of introspection to take decision on its
own.
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 Faith in themselves and in their founding teams, defines as believing on its own thought
which plays a vital role when it turns a life on route of success (Aldrich, 2017).
 High risk tolerance showcase as leaving college by bill gates put him at a place of a
person where taking decision is the most difficult part. Preference for horizontal or
vertical integration and Stubbornness to pursue a passion.
These are some characteristic traits which an entrepreneur has in personality and focus on
growth sector.
Mark Zuckerberg who is leader by his personality as confidence approach in taking
decision and working on it is the most prominent part of a person.
Characteristics
 Passionate in doing work as at 12 years old, Zuckerberg developed a messaging program,
which showcase personality to love the work.
 Critical thinker, as the success of company route faces many challenges but Zuckerberg
take every new step by deep thinking and planning (Carborough, 2016).
Traits
 Visionary, as designing a portal which connected billions across the glob showcase
thought process of it. Go for it attitude, moving towards a new growth is difficult but
keeping an optimistic thought in mind give a push to tackle difficult situations.
 Accepting of criticism which tells the personality traits in facing difficulties in a way of
getting more success.
Skills
 Powerful communicator defines a role play in making more comfortable with interaction
as it showcase a person by personality.
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 Problem solver, which showcase ability to face difficulties and kill every barriers on the
route of success journey.
P6 Entrepreneurial personality reflect entrepreneurial motivation and mindset
The better skills and features make a person good entrepreneur. There are several
components which develop impact on entrepreneurship process. Under this, personality of a
person or entrepreneur impact on the mindset and motivation. Bill gates and Mark Zuckerberg
both are the successful entrepreneurs and they have effective skills as well as personalities to
gain the success (Lipset 2018). Bill gates is an American investor, humanitarian and author. He
is a founder of the Microsoft Corporation. On the other hand, Mark Zuckerberg is an American
technology entrepreneur. He is leading and also co- founding Facebook. There is a OCEAN
model related to the personality and its different dimensions are mention below:
Openness to experience: It is related with the creative and innovative thinking of a
person. There is a need to an entrepreneur to be creative, imaginative and innovative in context
to satisfying needs of people. It is helpful in develop the products by including innovate features
on the basis of demand of consumers for getting the competitive advantages to firm.
Conscientiousness: Under this, people have the high degree of conscientiousness that is
prompt and reliable. Under this, traits consist being thorough, organized and methodic. It is
helpful in develop the better strategies for business to assure effective implementation of
activities.
Extraversion: These type of people get energy by interacting with the other people. They
like to communicate with the people and share their opinions (Nambisan, 2017). In this trait
consists being sympathetic, kinds and affectionate.
Agreeableness: These kinds of people are cooperative, compassionate and friendly. The
people with the minimum agreeableness many be distant. Personality dimension consists
attributes for an instance altruism, affection etc.
Neuroticism- It is a personality trait that is characterized through emotional instability,
sadness etc. People which have the high trait tend to be experience of mood swings, sadness,
anxiety etc.
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For successful entrepreneur such as bill gates and Mark Zuckerberg, motivational drivers
and mind sets are Visionary, Accepting of criticism, Powerful communicator, Problem solver,
Passionate, Critical thinker and many more. All these drive helps them to communicate effective,
resolve the issues quickly, do not dislocate with their passion which help them to become
successful.
P7 Background and experience can hinder or foster entrepreneurship
Entrepreneurship process is impacted through different components and these can affect
in negative as well as positive manner. In this, background of a person impact on skills and well
as abilities of a person. If an individual belongs to the business background, then it will
encourage and also tale a better initiative to begin business and deal with the different
components. It will help an entrepreneur to start a business and also conducting the activities in a
significant manner (Meyer, Neck and Meeks, 2017). On the other hand, if an individual belong
to non- business family then it will face some complexities because he does not have the proper
knowledge regarding any business concepts. There are some points mention below which foster
and hinder entrepreneurship:
Level of education: Education is one of most necessary aspect in life of human, it makes
a person learn regarding how to behave in a society and deal with the people. High education
level encourage a person to deal with risk and attain success.
Family background: It is other aspect that have more affect on motivation and mindset
of a person. Under this, Mark Zuckerberg is successful entrepreneur but he faced many failures
(Fairlie and Lofstrom, 2015). From his family support he never losses his hope and continue to
work hard. On the other hand, family background of Bill Gates is strong and his father was a
layer who motivates Bill Gates to think innovative, focus on their ideas and turn them in to
reality.
Nationality: This factors also impact on mindset as well as motivation of an
entrepreneur. Under this, national boundaries and culture both impact on way of thinking of a
person and the decisions (Belz and Binder, 2017). In addition to this, Mark Zuckerberg and Bill
Gates both belong to the America and get success in their life.
After examine the family backgrounds education level and nationality, it has been
observed that higher education motivate them to deal with the various risk, their family always
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their to support them in all situation, its nationality helps them to think more innovative. All of
their backgrounds and experiences helps them to obtain success effectively.
CONCLUSION
From the above project report, it has been concluded that an entrepreneur has different
ability to work on a given objective as to get ahead of the pack in market. Entrepreneurship has
different ballpark number while calculating a success ratio on every financial year. Showcasing a
big picture and corner the market, is an appropriate way to tackle businesses and is the most vital
part of an economy. To cut-throat the competition an entrepreneur put all efforts in getting
success and design a game plan which reflects personality traits to achieve the desire goal for
company. Leading personality which motivates every individual to work hard.
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REFERENCES
Books and Journal
Aldrich, H., 2017. Learning together: National differences in entrepreneurship research.The
Blackwell handbook of entrepreneurship, pp.5-25.
Belz, F.M. and Binder, J.K., 2017. Sustainable entrepreneurship: A convergent process
model.Business Strategy and the Environment. 26(1). pp.1-17.
Burns, P. and Dewhurst, J. eds., 2016. Small business and entrepreneurship. Macmillan
International Higher Education.
Burns, P., 2016. Entrepreneurship and small business. Palgrave Macmillan Limited.
Cooper, A. and Folta, T., 2017. Entrepreneurship and high‐technology clusters. The Blackwell
handbook of entrepreneurship, pp.348-367.
Dees, J. G., 2017. 1 The Meaning of Social Entrepreneurship. In Case studies in social
entrepreneurship and sustainability(pp. 34-42). Routledge.
Etzkowitz, H. and Zhou, C., 2017. The triple helix: University–industry–government innovation
and entrepreneurship. Routledge.
Fairlie, R. W. and Lofstrom, M., 2015. Immigration and entrepreneurship. In Handbook of the
economics of international migration (Vol. 1, pp. 877-911). North-Holland.
Fini, R., Lacetera, N. and Shane, S., 2016. Academic entrepreneurship. The Palgrave
Encyclopedia of Strategic Management, pp.1-4.
Hitt, M. and Duane Ireland, R., 2017. The intersection of entrepreneurship and strategic
management research. The Blackwell handbook of entrepreneurship, pp.45-63.
Kirzner, I. M., 2015. Competition and entrepreneurship. University of Chicago press.
Kuratko, D. F., 2016. Entrepreneurship: Theory, process, and practice. Cengage Learning.
Lipset, S. M., 2018. Values, education, and entrepreneurship. In Promise Of Development (pp.
39-75). Routledge.
Meyer, G. D., Neck, H. M. and Meeks, M. D., 2017. The entrepreneurship‐strategic management
interface. Strategic entrepreneurship: Creating a new mindset, pp.17-44.
Nambisan, S., 2017. Digital entrepreneurship: Toward a digital technology perspective of
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Read, S. and et. al., 2016. Effectual entrepreneurship. Routledge.
Scarborough, N. M., 2016. Essentials of entrepreneurship and small business management.
Pearson.
Storey, D. J., 2016. Entrepreneurship and new firm. Routledge.
Zahra, S. A. and George, G., 2017. International entrepreneurship: the current status of the field
and future research agenda. Strategic entrepreneurship: Creating a new mindset,
pp.253-288.
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