Impact of Brexit on Small Businesses

This assignment involves analyzing the impact of Brexit on small businesses by referencing relevant studies and research papers. It requires a comprehensive understanding of entrepreneurship, small business management, and public policy. The task involves reviewing various sources to understand how Brexit has affected small businesses in the UK before and during the current financial crisis.

Entrepreneurship and
Small Business
Management

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1. Different types of entrepreneurial ventures and typology of entrepreneurship....................1
P2. Similarities and differences between entrepreneurial ventures............................................3
TASK 2............................................................................................................................................4
P3. Assess how micro and small businesses impact on the economy ........................................4
P4. Important small businesses and business start –ups after ‘Brexit’.......................................7
TASK 3............................................................................................................................................9
P5. Characteristics, traits and skills of two successful entrepreneurs and differentiate them
from other business managers.....................................................................................................9
P6. Assess how aspects of the entrepreneurial personality reflect entrepreneurial motivation
and mindset...............................................................................................................................10
TASK 4..........................................................................................................................................11
P7. Background and experience can hinder or foster entrepreneurship....................................11
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Entrepreneurship is kind of innovative idea which helps to run every business. They are
innovators who are willing to take risk by generating fresh ideas to create unique and able to get
profitable solutions to a modern issues. Small business bring flexibility among employees and
their partner whereas entrepreneur bring out innovative idea to earn more profits in their business
(Ackermann, 2012). For a successful business, it is necessary to have managerial skills and have
an ability to develop strong team. Therefore, an entrepreneur is a combination of leader as well
as manager that can able to develop skills, abilities and their experience from the past records.
This report covers different types of entrepreneurial ventures and their typology of
entrepreneurship, similarities and difference between entrepreneurial venture. This assignment
also includes how small and micro business impact an economy and talks about importance of
small businesses after Brexit.
TASK 1
P1. Different types of entrepreneurial ventures and typology of entrepreneurship.
An Entrepreneur is a person who take initiative by organizing a venture to take benefit
of an opportunities such as decision-making, decides what to do, how and by whom it should be
done. An entrepreneur is the one who manages all the resources and other efficient methods for
achieving per- determine objectives of a business firm.
The Entrepreneurship is a study of how new businesses are to be created and the
operations that are required to start a new business. They are high risk taker and bear losses
against them while attaining their perspective.
A entrepreneurial venture refers as a business enterprise who undertake risk and danger
to generate new and fresh ideas using creativity and innovation for improving revenues and
social economic conditions (Blackburn, Hart and Wainwright, 2013).
There are some key entrepreneurial ventures are as follows:
 Small business entrepreneurship: It is a start-up company which are opened up with a
small investment is known as small business entrepreneurship. This includes stores,
consultant, electricians, carpenters, etc. They are the one who runs their own business.
Generally, they hire local employees or their family people to bare their profits Also, they

cannot provide scale to attract venture capital as their funds for business are taken by
their relatives or friends for a business loan.
 Scalable start-up entrepreneurship: Unlike small businesses, these are the business
firm which able to get expand according to the requirement of funds. The funds are able
to manage by an entrepreneur to increase or grow their business into large extent.
 Large company entrepreneurship: They have limited life cycles. Some of the business
grow through sustaining innovation, offering new products that are different around core
products (Bridge and O'Neill, 2012). These firm includes change in taste, new
technology, new competition which can create pressure for more unique ideas. Large
company entrepreneurship is basically for manufacturing industries and factories which
serve their services in form of raw material to other business firm. Social entrepreneurship: These are the innovator who focus on creating goods and
services to solve social needs and problems. They make the world a better place, not with
creating wealth or market share, but as a non- profit, for profit or both.
Relations with typologies of entrepreneurship
The typology of Entrepreneurship are describe under below as:
 Serial entrepreneur: In case of serial entrepreneur venture, they come up with new ideas
and start businesses based on them. They takes challenges repeatedly and once they
established their business, they delegate their responsibilities to their subordinates to run
operations and move to other ventures (Bruton and Ahlstrom, 2010). Individuals
continuously come up with new ideas and innovation to meet their goals. For example,
Andreas von Bechtolshiem co- founder of Sun Microsystems used in building the
company, he left sun established granite system which manufacture network switches.
 Social entrepreneur: In this type of typology, an entrepreneur take initiative to solve
social issues related to society. They are generally focused on developing sustainability
that would be either profit or non- profit organization. For instance, Bill Drayton who is
founder and chairman of Ashoka.
 Female entrepreneur: According to this type of venture, female start and operate their
own venture and able to manage the workforce. They are enough qualified to take any
kind of decisions (Burns, 2010). For example, Oprah Winfrey, had started her career as a

local TV anchor and now, she is a co-founder of Oxygen, a cable station that is launched
in 2011.
P2. Similarities and differences between entrepreneurial ventures.
Lifestyle venture or businesses
similarities
Serial entrepreneurs ventures
similarities
 In this case, they believe in investing
money in business to deal with tough
competition so that they able to make
better image into market (Ligthelm,
2010).
 Here, entrepreneurs consider that they
able to perform better for attaining
goals and bring stability in a firm.
 Whereas, types of entrepreneurs as they
are peculiar about their ideas and
innovation and not from existing
market.
 Under this, serial entrepreneur also
focus on their objective to achieve
desired results.
Difference Differences
The major difference between lifestyle and
serial entrepreneur is that they invest more
funds to achieve competitive advantage and
increase demand into marketplace.
Under this, they invest more than lifestyle
venture for bringing up new changes through
an innovative ideas.
Male entrepreneur
Similarities
Female entrepreneur
Similarities

 In case of male entrepreneur, they think
that they are enough capable to bear
any types of losses and uncertainties
while operating business.
 Male entrepreneur are confident
regarding their ideas and innovation
and are able to make their decisions for
managing entire business operations.
 On other hand, female entrepreneurs
are also handle vatious task at the same
time and they have abilities for running
their business and attain their goals.
 As female entrepreneur are multi
talented because they perform several
and different task in a particular time
period and maintain all works in
effective manner (Daneke and Lenox,
2010).
Difference Difference
 In case of male entrepreneur are more
strong than female entrepreneur and
make themselves powerful for making
an effective decisions and work hard to
improve their overall performance in a
difficult situation (Fassin and Buelens,
2011).
 Generally they focus on developing
good brand among competitors to
maximize their wealth to attain future
goals. As they are generating revenues
or profits through investment.
 In case of female entrepreneur are
opposite to the male entrepreneur. They
are polite in behaviour and able to
handle customers in well manner.
 As they manage their personal and
professional life at a same time. Hence,
not able to attain desired result as
compared to male entrepreneur.
Therefore, these similarities and differences support in understanding their different
entrepreneurial ventures as well as their nature of business for choosing best strategies as per
requirement to a business firm and generate profits.
TASK 2
P3. Assess how micro and small businesses impact on the economy
Small businesses are the backbone of UK economy, driving growth, opening new
markets and creating employment which is necessary. They encourage competition and bring

fresh and new ideas that challenge the statue quo (Chittithaworn and et. al., 2011). There are
many other reasons which affect and bring a great impact on micro and small business. Small
and micro business helps in to assist and determine various opportunities to grab them. This will
bring a positive outcome and increase the growth of an economy.
The business is classified into three category, they are described under below as:
Micro size enterprise has fewer than ten employees and annual turnover is below two million
euro.
Small size enterprise are those firm that has fewer than fifty employees and annual turnover is
below ten million euro.
Medium size enterprise are those company which has 250 employees and annual turnover is
below 50 million euro.
The nature and characteristics of small businesses are as:
Private sector is a part of the economy that are run by individual for their own profits
and not state controlled. This segment are under control by corporates and business enterprise is
known as private sector. It will increase and develop economic growth of the nation.
Sole proprietorship is a simple business that can operate a business. They are not a legal
entity. It refer to a person who owns business and are personally responsible for its debts and
fund arrangement (Cowling and Ledger, 2012).
Partnership is done at least between two person or more. This helps them to arrange
fund easily as there are number of partners that able to set up their fund simply. They share risk
and profit into same ratio.
Growth and decline can be measure through economic growth rate that is affected by
poor stability in privatization, decrease employment and increase poverty and other related factor
(Dennis, 2011). In case of growth this can be achieved from developing micro and small
business enterprise, increase economic-growth, reduce poverty and increase job opportunities.
Some of impact on micro and small business on economy. They are describe under below as:
Impact on local: In case of micro or small business they helps to develop the locality or
society, this plays a major role for growth. This assist in to encourage citizens and their local
government to select and acquire local products and services for development of their area. This
will bring enhancement of local regions and areas to motivate individual. As a result, their
locality by giving support and inspirations so that they bring creativity and innovation to

establish an effective business enterprise. Therefore, they stimulate local economies and
development of nation.
Regional impact: In this case, micro and small business bring the development for
starting up ventures that can improve infrastructure in a well manner. These helps to develop
community or society by creating clean and healthy environment. It also bring new employment
opportunities for community to fulfil basic requirements and improve standard of living (Down,
2010). This will helps them to take initiative while performing their task on time. It also,
includes the increment in their overall performance and develop the quality to get engage in their
own work, while doing their task.
National Impact: Under this, small businesses contributes a major role in the growth of
GDP of country. The entrepreneurs support in to decrease import and increase their export in
other nations. This helps in to generate the revenue for a country from excise duty, custom duty,
tax rate and many other rates or duties that increase economic growth. It plays a vital role in
developing nations economy as a result bring impact to their overall production and other related
factors. This includes foreign direct investment and foreign plans that will assist them to increase
economy of the country.
P4. Important small businesses and business start –ups after ‘Brexit’.
Brexit affects UK as well as other countries economy as well. As a result, bring a large
impact on small businesses that includes overall activities businesses and purchasing power of
consumers at a time of buying their products and services. The European Union is a club of 28
European countries and the members of this, they follows similar rules and regulations as they
are the members of it (Schaltegger and Wagner, 2011). This make trade possible with one
another with freedom. But United Kingdom finds it difficult and leave the Union which bring
effects on their culture, customs, independence and place in the world according to them. This
increases trade opportunities between other countries, developing jobs and decrease prices and
bring effect on an economy. Brexit affect other countries economy. As a result, reduce the value
of euro in the global market which never happened in last 20 years (Preuss, 2011). But this
increase unemployment rate of the nation as many people entering in UK for job because small
business entrepreneur think opportunities increases in UK.
Difference between small businesses and start-ups
Small business Start up

 It is the business that has a low
investment money.
 This is a type of cottage industries in
which there is low resource and
equipments, also use labour intensive
method.
 These are the firms which are freshly
start up by the owner or business men.
 In case of start up company, they are on
initial stage in which they run a
business enterprise.
(Source: Brexit’s impact on small businesses, 2018)
As per the given diagram, it has been concluded that employees plays a vital role in the
growth of a small business enterprises. It has been identified that if there is no employees the
growth of a business firm grows up to 14.8%. Whereas, in case of micro enterprise when the
number of employees increases the growth of business rises up to 18.9%. On the other hand, in a
small-business firms employees increases the growth rate also, accelerate up to 23.4%. And last,
in case of medium enterprise when there is 50 to 250 employees works the growth rate rise to
29.2%. Therefore, it has been analysed that workers are a paramount part for the growth of an
economy.
Illustration 1: Brexit’s impact on small businesses

 Increase level of standard: While increasing or developing micro and small business
that assist in to rise in living standard of an individual by increasing other relevant factors
that bring a positive outcome of an economy. This also includes remuneration act other
legal law and order with various languages (Schaper and et. al., 2014). By increasing job
opportunities for people that will increase their living standard as well as comfort, wealth
and bring different socio- economic and other related factors.
 Enhance employment opportunities: In this aspect, it includes micro and small-
business firms. This will assist in reducing poverty and unemployment turnover ratio,
while increasing job opportunities it will helps in enhancement of skills, abilities and
knowledge related to their business.
Therefore, small business helps in to develop the economy of the UK country and also
build the social and community relations by creating job opportunities, increase infrastructure,
basic facilities in rural areas, reduce the poverty and distribution of wealth among employees.
This also bring highlights on growth in economic by introducing government taxes, foreign
exchange, direct investment and balance of trade. This will improve social security and bring
stability in the economy.
TASK 3
P5. Characteristics, traits and skills of two successful entrepreneurs and differentiate them from
other business managers.
A successful entrepreneur have various qualities for becoming effective and distinct.
They have some special characteristics, skills and traits that is essential for running a business
enterprise and then they known as entrepreneur. They are generally get motivated and inspired
due to enable to take risk in the market (Shane, 2012). With innovative ideas, opinions and views
they lead business in better manner of two entrepreneur they are Mark Zuckerberg and Bill
Gates.
The personal trait of Bill Gates are as:
 Risk taker: In case of Bill Gates, he is a high risk tolerance person. He faces tough odds
that helps them in guiding to leave comfortable lives to start a risky business venture.
 Do not give up: When he takes risk but not able to achieve their goals then also, he start
with new and fresh ideas to bring up with an innovative idea (Shamuganathan, 2010).

The traits and characteristic of Mark Zuckerberg are as follows:
 Highly motivated: At a time of failure, they never give up there hope. He always try to
work with motivation to achieve their objectives. This help them to stand a brand name
that is “ Facebook”.
 Teamwork: It is a greatest personality trait of Mark Zuckerberg is that he believe in
great team. He know how to build a great company by himself. This can be done through
group work and right relations with people.
Difference between Mark Zuckerberg and Bill Gates
Mark Zuckerberg Bill Gates
 He is the owner of social media named
as Facebook.
 In case of Zuckerberg, he provided tool
to facilitate communication among
student.
 Under case of Facebook, he did not
manufacture anything but provide
services to remain in touch with their
friend and families.
 He is the owner of Microsoft
corporation.
 Bill Gates had a clear vision what he
wanted to achieve and what his goal
was.
 Whereas, in case of Bill Gates, he
manufacture software, electronic
devices and many more.
They both are different from other business manager due to their personal characteristics,
traits and skills also they have patience and a specific objective to accomplish their goals on
target. This helps them to become different personality as compared to other business persons.
P6. Assess how aspects of the entrepreneurial personality reflect entrepreneurial motivation and
mindset.
In this portion, it is discussed about the person and find entrepreneurs qualities and
affects individual capacities that how to perform any business activities as per their abilities
(Stokes, Wilson and Wilson, 2010). The different factors that reflects entrepreneurial motivation
and mind set are describe in below as:

 Openness to experience: In this, it is used to do with culture, originality, intellect with
appreciation of art, emotion, curiosity, unused ideas, adventure that includes variety of
experience. They must be ready for dealing with innovative things.
 Conscientiousness: In this part, it talks on orientation for attaining desired objectives so
that they are able to influence the mindset of employees.
 Extraversion: Under this, entrepreneur must be outspoken as they able to share ideas,
views and opinions without any boundation with confidence. This helps them to
influence there employees and motivate them for freely conversation.
 Agreeableness: This is used to be focused for business objectives and provide positive
environment at work place. It will helps in to motivate employees and develop good
relations with them.
TASK 4
P7. Background and experience can hinder or foster entrepreneurship.
An entrepreneur backgrounds and experiences plays a vital role in making them a
successful businessmen. Their personal background includes different aspects faced in his life
such as school, family and society that they belong to (Welter, 2011). For successful
entrepreneur, values, education, culture plays an eminent part for an effective enterprise.
Experience consider various situations that are faced in past life. For instance, at a time of
investment if an individual faces any losses regarding funds they feel scary in case of second
time while doing investment. The rewards and drawbacks of entrepreneurship are described
under as:
Reward: To become a successful entrepreneur it is tough choice but after the struggle its
rewards are priceless. Therefore, it necessary for them to identify a need and fill it is the biggest
motto today for every business entrepreneur. The requirements are to accomplished by a
businessmen this helps them to achieve their targets.
Drawback: The main drawback of entrepreneurship is the uncertain income as they do
not have a flow of regular income which is the major drawback for them. Also, high level of
stress as they have to manage everything for their company right from a small nail up to the sky-
rocketing. They have to suffer from huge stress.

CONCLUSION
From the above context, it has been concluded that, an entrepreneurship is a vital role for
a small business enterprise. As they able to forecast and measure the risk to undergo with it, this
helps in determining the objectives of a business firm. Also, highlights on there overall
performance that able to achieve their goals in pre-determining targets. This makes them flexible
to measure the risk as well as choose corrective measures to perform their task on individual
basis. They assist in to guide their employees in order to try and move forward with a new and
innovative ideas that may provide them success in their business.

REFERENCES
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Online
Brexit's impact on small businesses. 2018. [Online]. Available through :
<http://theconversation.com/brexits-impact-on-small-businesses-the-experts-may-be-
spot-on-after-all-90561>