The Role of SMEs and Entrepreneurship in Enhancing UK Economy

This document delves into the significance of Small and Medium-sized Enterprises (SMEs) and entrepreneurship in boosting the UK economy. It highlights key traits of successful entrepreneurs, emphasizing their crucial role in economic development. The assignment is a valuable resource for students looking to understand how SMEs and entrepreneurship contribute to the country's prosperity.

ENTREPRENEUR
SHIP

Table of Contents
INTRODUCTION ..........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Examine different types of entrepreneurial ventures and explain how they relate to the
typology of entrepreneurship. ....................................................................................................1
P2 Explain the similarities and differences between entrepreneurial ventures...........................2
TASK 2............................................................................................................................................4
P3 Assess and interpret relevant data and statistics in your mini research, to illustrate how
micro and small business impact on the economy......................................................................4
P4 Importance of small business in growth of social economy after Brexit...............................5
TASK 3............................................................................................................................................6
P5 Determine the characteristics traits and skills of successful entrepreneur which differentiae
them from managers....................................................................................................................6
P6 Aspects of entrepreneurial personality reflect entrepreneurial motivation and mindset.......8
TASK 4............................................................................................................................................9
P7 Examine and from mini research how background and experience hinder or foster
entrepreneurship..........................................................................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Entrepreneurship is the collection of many processes which provide services and
innovative environment for people. This is the factor of production which organising profit
oriented activities for the betterment of the organisation. The present report is based on
entrepreneur and its overview in relation with different businesses. Further, it will explain the
typology of entrepreneur and different scale of ventures. It also provides the opportunities for
small business in Post Brexit in UK. Moreover, the main objective of this report is to explain the
importance of small ventures and opportunities involved in future times. Adding to that, small
ventures highly contribute in economy growth which provides different benefits for the
population as well. Likewise, to become successful entrepreneur, individual should have some
entrepreneur characteristics and traits which will be also explained in this report further.
TASK 1
P1 Examine different types of entrepreneurial ventures and explain how they relate to the
typology of entrepreneurship.
There are four types of entrepreneurship ventures who contribute their part in the national
economy. Every individual entrepreneur starts their business at small level and takes its business
into higher level as per their skills and opportunities (Acs, Szerb and Autio, 2014). There are
four types of ventures such as small business entrepreneurship, medium or scalable start-up
entrepreneurship venture, large scale entrepreneurship and social entrepreneurship ventures (The
Four Types of Entrepreneurship, 2011). These are the types of ventures. Are describing below:
Small Business Entrepreneurship: Small Business enterprise is the most essential and
overwhelming part in the growth of economy growth in UK. Moreover, small businesses are
based on small scale in which they take small funds or capital to start their own business. Small
enterprises run their business to full fill their family needs. Small businesses has main objective
is to feed the family (Burke and Phelan, 2016). Adding to that, small business ventures start their
business at their own level with two or three members. They do not require any large number of
workers in the business. Only individual is enough to tackle the business activities. Moreover,
Entrepreneurship typology is the helpful source to understand the business activities and more
knowledge to understand the business environment. Some small businesses are grocery store,
hair dresser, plumbers and electricians.

Scalable star up or medium Entrepreneurship Venture: Medium scale business are
alike small businesses which invest small amount on the business start-up with new creative
ideas (Campbell and Park, 2016). Medium scale enterprises are get attraction of investors to
enhance their financial activities by giving best offers to them. Moreover, the purpose of the
medium scale businesses is to establish their brand image in the market and adopt the best
opportunities to the individuals. Along with that, they focus on the new environment and
opportunities through which customer can purchase more new product and services of the
company. It is the kind of innovation clusters which enhance the market product and services to
attract the customer satisfaction (Carson and Pavelin, 2016).
Large entrepreneurship venture: Large organisation is the enterprise which has finite
cycles. Most of the organisation growing itself with the help of sustaining innovation. Offering
new product and services. Big organisation is customer oriented maintain the quality of services
to give best services to their potential customers. They also invest hug funds on promotional
activities top attract the customer attraction towards the company products and services. They
rapid change in the services according to the taste of customer. They offering innovation, new
technologies, legislations as well as laws to protect the company functions. Large organisations
always consider their brand image at first priority for which they adopt attractive innovative
ideas (Carson and Pavelin, 2016).
Social entrepreneurship venture: Social Entrepreneurship venture is the non-profit
organisation who runs their business for social welfare. They focus or solve the social problems
and issues. But unlike scalable venture the main objective of this firm is to make the world better
place. They don't create market share or wealth for the founders. They only focus on the issues of
peoples.
Typology of entrepreneurial is defined the relationship between the entrepreneur
functions which help to relate with the functions of the business. It helps to aid to maintain the
good relationship with stakeholders (Chaston, 2017).
M1
Public and corporate sector are the major sector which investigate diverse range of
entrepreneurial ventures to demonstrate an understanding of an entrepreneur. It enhance the
overall process or understand the different aspects of entrepreneur. Many of the private
companies are become public such as semi government company.

D1
Entrepreneurial development has huge scope of growth they provide different
opportunities for the customers or for the development of nation. Moreover, entrepreneur
introduces new services and products. Apart from that, it also helps to enhance the market
opportunity. Besides, due enough capital or resources some entrepreneur could not achieve.
P2 Explain the similarities and differences between entrepreneurial ventures.
Basis Small
entrepreneurshi
p
Scalable medium
entrepreneurshi
p
Large
entrepreneurshi
p venture
Social
entrepreneurshi
p.
Objectives The main
objectives of
small enterprises
to feed the family
by earning small
amount of profit
(Destiana, 2017).
Medium scale
business main
objective is to
give customer
satisfactory
product and
services to
enhance the
business growth.
Large
organisation
objective is to
earn profit
revenue by
adopting
innovative
technologies and
business idea.
Social
entrepreneurship
main objective is
to safeguard and
protect the
interest of people.
Capital
requirement
Small ventures
require less
amount of capital
to run their
business
activities.
Medium scale
business requires
funds to run the
activities from
investors for
which they get
funds from
investors by give
them the best
proposal.
Large
organisation
requires huge
funds in order to
enhance the
business
functions and
ideas
(Havukainen and
et.al., 2014).
Social venture
require funds in
order to enhance
the social welfare
and consider
more new things
and issues.
Innovation Small business Scalable business Large Social

does not give
more action on
innovation.
venture should
look upon the
innovative ideas
in order to attract
the investors or
customers.
organisation
should also take
steps to enhance
the innovative
ideas in order to
meet the needs of
the customers.
organisation does
not need to focus
on the innovation.
workers Small ventures
not having
workers to hold
the business
activities (Ortiz
García and Olaz
Capitán, 2014).
Medium scale
ventures require
workers to run the
business activities
and functions.
Large
organisation
requires skill full
workers and
employees who
take care of
business
functions.
Social ventures
organisation
require some
group or team
members to
collect the funds
and for helping.
All the kinds of business venture are different from others. Its functions and organisation
activities are depended on the objectives or goals. Similarities of these ventures are to attract the
customer attraction. In this way, organisation enhances the business activities. Entrepreneur is
the person who starts the business for some objectives or motives. For that, they need to make
business plans as per the customer needs and wants.
TASK 2
P3 Assess and interpret relevant data and statistics in your mini research, to illustrate how micro
and small business impact on the economy.
Small businesses are the backbone of the UK economy which holds the new attractive
activities. Small and micro businesses are the fastest growing market which provides huge
opportunities and growth (Pettersson, and et.al., 2017). It aids to opening new market creating
new jobs, innovation. Its role in the economy is very vital and important. They encourage and
improve the competition level in the UK market. 95 % businesses are from small scale which
contentiously given high revenue and growth to the people of UK. It is the growing economy and

become stronger across British enterprise. As per the supported by recent findings by RSA they
demonstrate that small and medium scale business are not survived in the market more than 5
years. Besides, they create more challenging situations in the UK market. In 2014 there were 5.2
million bushiness in UK out of which 99.9% of those from SME. Moreover, small businesses
give great impact on the economy of UK. It helps to get more revenue and economy growth. On
the basis of mini research, it can be concluded that Small business enterprises' innovation, social
integration, job opportunities (Ratten, 2017). Along with that, small business enterprise also
provides employment opportunities for those peoples who don't have any job or earning source.
So after that, UK gets more opportunity to remove unemployment in the economy. As per the
research another findings is that government of UK has provides flexibility and more
opportunities to encourage more small firms in the country. This helps to grow the business
economy and opportunity for the population. On the other side small firms also help to enhance
the customer satisfaction approach by give them new attractive product and services on the other
side they also focus on the activities through which they operate its business at international
level. Small business has given very large impact on the GDP. This is the lifeline of the country
who contributes their part in the development of economy (Robinson, Shumar and Neergaard,
2014). The trend of the SME starts from 2013 and 2014 from that that date they are not stopping
from that time. This was the best time for the population of UK to start the business in UK
market. Moreover, the main opportunities for the economy are creative minds and product and
services of the companies. Small scale business also attract the customer attraction by give them
the best innovative services and get them satisfied and happy. In the year of 2014 small business
gave turnover of about $1.6 trillion with the medium sized business along with that, SME is
plays a very important role at the time of Brexit effects. This is the largest earning business at
that time. Moreover, the main purpose of the SME to provide services at low prices so that
customer can easily purchase those services (Yaseen and et.al., 2018). They focus on the all level
of customers. At the time of job creation 60% person are employed out of which 81% are
workers. This is the contribution of SME in the growth of UK economy. As per the mini research
it is calculated that 38% of SME in UK are in the innovative activities. Means people
implemented their own creative minds by offering new services or products through which
customer enhance the demand. Moreover, it has been proved that Small scale enterprises are

given huge opportunities to the UK economy. In before times in UK small scale business was
very popular and essential to growth economy of UK.
M2
Small, medium and large venture helps to enhance the growth of the economy. It creates
new examples of the organisation and makes advantages to make better environment. Large
organisation makes more better environment in the company and provides large economy
growth. Besides, small enterprises has low scope to make better environment growth and new
development skills.
D2
Small business gives high impact on the development growth. It makes different styles
and development which provides most grateful advices. Besides, small scale organisation also
having or facing high competition in the market.
P4 Importance of small business in growth of social economy after Brexit.
Brexit is the form of Britain decision to exit European Union in referendum on 23rd June
in 2016 with 51.9% vote. After the announced that UK would no longer the part of EU. Many of
the organisation affected by these implications (Yook and Jeon, 2014). The impact on the small
scale business from GDP is wide ranging because this is the lifeblood of the UK economy. In
terms of overall activities' consumer are widely purchased their product and services from the
small scale economy. At the time of Brexit manufacturing sector get affected and then diminish
the construction and manufacturing industries. The reason of this low market is weaker pound.
Small business also in shocked since they generally have a lower operation fields. Moreover, at
the time of falling GDP means smaller business had struggled to keep afloat (Havukainen and
et.al., 2014). After the Brexit, there was a heavy economic crises in UK due to which market fall
down and businesses facing loss. Pound fall down by 10% as compare to dollar 15%. At the time
of Brexit effects small scale business faces losses on the other side they facing market crises and
low market share of the company (Ortiz García and Olaz Capitán, 2014). Along with that, after
the one year of Brexit impacts small businesses get back to their normal pace with the help of
some correction action. Along with that, at the time when things goes normal government initiate
the functions of small scale business and provide facilities to enhance the economy growth. With
the help of these steps UK economy try to maintain their level back to normal. At the time of
Brexit effects small business gives economy growth to the UK economy. Being a single

economy, people of EU enjoying their freedom of goods, services and capital. European country
can easily trade without given any trade tariff or charges. At the time of Brexit effects
government of UK faces may several issues and effects which gives both positive and negative
impact. After long time, it gives great opportunity to start the new market and new small
businesses to provide goods and services to the customers. Moreover, the main objective of the
government is to enhance the growth and economy of UK (Havukainen and et.al., 2014).
Small businesses gives highly influencing factor in the growth of economy. They are very
much essential to enhance the business opportunity and national economy after the impact of
Brexit. Small enterprise are partly important for new creation, they maintained all provision s in
the business, or they also helps to pay tax timely, through governments makes more
development.
TASK 3
P5 Determine the characteristics traits and skills of successful entrepreneur which differentiae
them from managers.
Entrepreneurship is the positive process in order to achieve the objective and
organisational objectives in order to meet the needs of customers. Every individual entrepreneur
person has their own skills and knowledge accordingly they work to obtain new ideas and
business plans. This is the best method to take business into new level. Characteristics of
successful organisation are skill full and talented entrepreneur mind. Entrepreneur is totally
different from managers in the organisation (Carson and Pavelin, 2016). Managers handle the
task and manage the team members to ensure the proper work. Besides, entrepreneur is the
person who runs the whole business functions and take protect the business from risk and
challenges. With the help of innovative ideas and business plans' entrepreneur person sustain the
business activities. Moreover, the main role of the organisation is to maintain the organisation
function in perfect manner. Apart from that, there are some characteristics, traits and skills of
successful entrepreneur which differentiate them from managers.
Passion and motivation: There are many traits which define the entrepreneur skills and qualities
(Characteristics of successful Entrepreneurs, 2017). A successful entrepreneur has passionate
and motivated to take things in positive manner. They always motivate and guide to their
employees in order to maintain the positive environment. Besides, entrepreneur always
passionate towards the objectives and goals rather manager always concern about the

accomplishment of task (Ratten, 2017). Moreover, Entrepreneur always consider the things and
take care of the business in long term. The main objective of the entrepreneur is to keep business
at the top level. This motivation power and enthusiasm makes successful business organisation.
Not afraid to take risks: successful entrepreneur always take risk as a opportunity. To
which they make new development strategy (Yaseen and et.al., 2018). Employees and managers
rely on the entrepreneur in every situations. So it is very essential for entrepreneur to make them
feel relax and happy towards the accomplishment of objectives (Characteristics of successful
Entrepreneurs, 2017). Along with that, they never show fear to employees through which
employees takes stress or burden. This is the characteristics of entrepreneur who differentiate
itself from manager. Entrepreneur is the risk taker and always ready to dive into future of
uncertainty.
Hard worker and disciplined: This is the another characteristics or traits of
entrepreneur which makes entrepreneur successful. Entrepreneur believes in themselves to take
decision making approach. Moreover, the main objective of the organisation or entrepreneur is to
hold the business function into the best manner. Besides, manager always depend upon the pre
planned structured and they abide to follow all those steps to accomplish the task. Manager can
not take decision without the permission of higher authorities (Ortiz García and Olaz Capitán,
2014). Besides entrepreneur is the person who does not need to take permission to others they do
anything they want to do. Moreover, entrepreneur is the person who well disciplined at the time
of work and friendly at the time of easy environment. They play both role as a boss or as a
friend. This is the quality of the successful entrepreneur.
Adaptable and Flexible: Successful entrepreneur be always passionate and dedicated
towards the organisation goals and objectives. This helps to understand the customer needs and
wants. This factor and skills reduce the chances of failure. Besides, manager of the company has
to be rigid and they work on the basis of given instructions (Robinson, Shumar and Neergaard,
2014). Successful entrepreneur always take all suggestion and make a successful use. Moreover,
entrepreneur always consider employees assets of the company who devote their efforts for the
organization success. Successful entrepreneur always appreciate their talented employees and
guide to their unproductive employees. This is the main reason entrepreneur is different from
managers. Along with that, successful entrepreneur offering satisfactory services to the

customers. Like Sir Philip is the successful retailer who provides quality of services to make
customer happy and satisfactory (Havukainen and et.al., 2014).
Product and market knowledge: This is the another way or quality of successful entrepreneur.
Entrepreneur always know about the current trends or technologies which may contribute in
business activities. So that, they apply to the business function. This helps to make work more
flexible and effective. They analyse the market to create something that didn't already exist in the
market. This process increases the efficiency of the person and make them more. These skills or
knowledge helps to enhance the skills or ability of the person.
Right connection: successful enterprise always maintain good relationship with the stakeholders
in order to make business expansion. This is the positive manner to treat with employees,
customers, investors, government, suppliers. This is the important aspects for the company which
gives negative or positive impact on the business activities (Pettersson, and et.al., 2017).
M3
Entrepreneurial characteristics are high influenced by new skills and wants they create
new advantage growth and new development factor. Entrepreneur system is the most advantages
and growth full factor. It is the another matter of fact which is highly affecting.
D3
There are different skills and traits and motivational drivers which gives positive impact
on the behaviour of leadership styles and give better environment in the business activities. Such
as good entrepreneur are always be a good leader, confident, motivated, skilful, initiative etc.
P6 Aspects of entrepreneurial personality reflect entrepreneurial motivation and mindset.
Entrepreneurial personality should be attractive and optimistic in order to make-up the
mind setup. It is very important for the business owner to be always intelligent creative and
innovative in front of the business organisation. This process helps to make attractive decision
making process. Person personality defines that weather they handle the market challenges or
not. Overall, entrepreneurial personality influenced by market dynamic changes, opportunity and
threats. Entrepreneur qualities and skill makes skill full personality. They need to believe in
themselves, have passion towards its work, tolerance and uncertainty, have passionate and hard
worker. There are several aspects of entrepreneurial personality which reflects or give motivation
and reflects the mind setup (Ortiz García and Olaz Capitán, 2014).

Need to achievement: Entrepreneur achievement change the mind setup of the entrepreneur and
give positive impact on the business activities. Achievements are the energetic dose which
enhance the skills or mind setup of the person.
Focus and self control: it is very important for entrepreneur to focus on the main activities. Or
to control on the emotions. This is the reason entrepreneur holds uncertain situation in positive
and correct manner. This helps to enhance the personality of the entrepreneur which gives new
great opportunities.
Innovativeness: Innovation is the another aspects which influence the entrepreneur personality.
This is the best and unique quality which helps to keep the business at top position (Robinson,
Shumar and Neergaard, 2014).
Stress tolerance: Control on angriness must be the most wanted skills for the business owner to
take things in positive manner. This helps to influence the personality of entrepreneur mind
setup.
TASK 4
P7 Examine and from mini research how background and experience hinder or foster
entrepreneurship.
Background and good experience always helps in future times or at the time of decision
making process (Chaston, 2017). Entrepreneur experience and education background should be
productive and effective to take action for the company betterment. Experience makes person
stronger and knowledgeable and to run the business experience and good knowledge is always
required. This helps to foster or hinder the entrepreneurship. This helps to organise effective
entrepreneurship programmes. For starting a new business capital is required to run the activities
of the business. Instead of that, without having enough fund they may impact on the
entrepreneurship. Without having education and motivation background individual cannot serve
better in the organisation. Entrepreneur experience may provide better opportunity to take new
productive plan for the organisation. Moreover, entrepreneur experience is very important to
analyse the customer needs and wants in the market. Experiences is very important factor to
enhance the business opportunities. To become successful entrepreneur person should gain
more good experience which makes him more strong and compatible to take risk and challenging
situations. Moreover, the main objective of the business is to gain the enough profit
maximisation in order to expand the business activities. This is the positive context in order to

full fill the needs of customers (Destiana, 2017). Along with that entrepreneur education plays
very important role in order make the important decision making approach. Along with that,
experience build the person confidence level and motivation level in order to full-fill the
organisational goals and objectives. Experience and effective entrepreneur gives more future
opportunities and growth. This makes person more knowledgeable, skill full and talented. This
gives positive impact or business opportunities which helps to enhance the business expansion in
future terms. Along with that, after running the business in the market from so many years,
entrepreneur getting good experiences to determine the business activities. Along with that,
experience entrepreneur may analyse the future uncertainness and risk involves in the business.
This process helps to take business decision for further expansion. Furthermore, good
background helps to understand the feelings and wants of employees. In order to that they
provide good guidance to them (Pettersson, and et.al., 2017). This helps to provide training
session to the employees as well. Good working and market experiences gives entrepreneur skills
to guide their own employees to enhance the productivity level of them. Effective entrepreneur
always concern about his employees and they always give advice and share good experience
with them.
M4
Entrepreneurial link with personal background and experience are very much enhance
and creative. This experience and knowledge lead to great function and get good opportunity in
business growth.
D4
A good background is very much necessary to get the things done in proper manner. It
makes good impact on the behaviour and culture. Along with that, it also makes some more
exciting and influencing challenges. Besides, bad experiences leads negative activities in the
business activities.
CONCLUSION
From the above report it can be concluded that, entrepreneurship is plays a very
important role in the UK market. Many top entrepreneur gives their contribution to enhance the
economic growth. Present report based on the entrepreneurship and their importance in
enhancing the UK economy. Furthermore, they focused on the characteristics traits of successful

entrepreneur Which helps to take further new opportunities. UK government needs to take more
further steps to enhance the role of SME.

REFERENCES
Books and Journals
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Amazon, LLC.
Burke, K. and Phelan, G., 2016. College and Community Partnerships: The Development of an
Entrepreneurial Program to Support Economic Development.
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small business success: validation across family ownership. International Journal of
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Destiana, D., 2017. Pendidikan Entrepreneurship sebagai Alternatif Menjawab Tantangan
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Yaseen, A. and et.al., 2018. Precursory effects on entrepreneurial behaviour in the agri-food
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