(PDF) The impact of Brexit on UK SMEs

OPPORTUNITIES TOWARDS
SMALL BUSINESS POST BREXIT

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1. Different entrepreneurial venture and their relationship with various typologies of
entrepreneurship..........................................................................................................................1
P2 Similarities and differences between entrepreneurial ventures.............................................3
TASK 2............................................................................................................................................6
P3 Assessment and interpretation of data to analyse micro and small-business impact on the
economy......................................................................................................................................6
P4 Importance of small-business or start up in social economy after Brexit..............................7
Task 3...............................................................................................................................................8
P5 Determination of characteristic, traits and skills of successful entrepreneurs.......................8
P6 Identify various aspects of entrepreneurial personality.........................................................9
Task 4.............................................................................................................................................10
P7 Background and experience that can foster entrepreneurship.............................................10
CONCLUSION..............................................................................................................................10
REFRENCES.................................................................................................................................12

INTRODUCTION
Entrepreneurs play an important role in developing economy of country. These are key
people who generally found and run small business and have qualities, skills and initiatives
which are required for anticipating current as well as future needs to achieve particular goals or
objectives. Entrepreneurship can be defined as procedures where people come with innovative
ideas and creativity and unique thinking for the purpose of starting and run an organisation in
well manner. Their main objective is to maximise wealth and profits by optimums utilisation of
available resources (Ackermann, 2012). This report will define entrepreneurial venture with
typologies. It will explain about Brexit which means Exit of Britain from EU (European Union)
and its impact on small businesses in UK. It also interprets relevant data to analyse micro
business impact on social economy. This will also determine the characteristic, traits of
successful entrepreneurs and how their personality reflects motivation and mindset as. This
assignment will examine background and experiences of entrepreneurs through mini-research
that can hinders and foster an entrepreneurship.
TASK 1
P1. Different entrepreneurial venture and their relationship with various typologies of
entrepreneurship
Entrepreneurial venture concern with a firm in which requiress new ideas, creations and
innovation to start a business and run it effectively. Entrepreneurs have various qualities and
skills to handle business in any situation such as risks or uncertainties as well as critical
circumstances in an effective manner (Blackburn and Hart, 2013). Their main purpose is
producing best quality of goods and services and satisfy customers so that profits and revenues
can be generated in more efficient way.
Entrepreneurs are key people who starts new businesses with creative ideas and unique
creations and frame the ideas in an appropriate manner for increasing growth and maximising
profits and wealth. They have better skills and knowledge for utilising resources such as land,
funds, human resource and many more to create and operate an organisation and focus on its
maintenance or management. They always try to make more profits and generate revenues for
business development while achieving particular tasks or objectives in better ways.

There are defining key entrepreneurial ventures such as:
Small business entrepreneurship: In this concern those small start up which starts and
operates by entrepreneurs. Therefore, individuals brings new ideas for launching a business by
considering several things such as resources, tools or techniques, objectives, innovative ideas,
unique plan and small investments that requires to states business so that they can accomplish set
targets or goals in an efficient manner (Wainwright, 2013). In this considered various businesses
such as carpenters, travel agencies, salon, and general stores etc. as per recent data of UK, it has
been analysed that there are around 5.7 million small-businesses which built 99.7% companies.
They hire only family members for running the business to feed them. Entrepreneurs generally
arrange financial resources from their friends, family and any business loans.
Scale start-ups: In this kind of business, an entrepreneur start a new venture by setting
specific visions and thinks that it will change the whole world in future. Entrepreneurs generally
create a business and focus on attracting various investors towards firm. Therefore, they attract
investors for bringing funds to implement ideas and formulate effective business. For this
purpose, they focus on appointing suitable person with ensuring their quality to attract various
venture capitalists and run an organisation in more efficient manner. Therefore, scalable model is
best method for making better firm and overcomes several risks or uncertainties as well.
Large-scale firms: In this included those organisations that operate business activities in
broad size as their operations broad segments which works for developing organisation and
achieve growth in an efficient manner. They consider number of transactions or operates day-to-
day activities for achieving set goals or objectives (Bridge, 2012). Large businesses have a
specific life cycle in which they launch, grow for providing variety of products or services to the
customers at marketplace.
Social enterprises: In such businesses, they only focus on providing social services and
their welfare while running an organisation. They also concentrate on analysing consumers
demand and try to provide best suitable goods or services to them for the purpose of satisfying
their needs or wants in well manner. In this included profitable and non-profitable organisations.
Relations with typologies of entrepreneurship
Female entrepreneurs: in this considered those ventures which started or operated by
women. They are multitalented because they manage their personal and professional life in same
time. Women also capable to perform entire tasks or activities in well manner. They have unique
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qualities and special features for running any firms by considering risks or uncertainties that
handle by them and also make favourable decisions for business development. For example
Oprah Winfrey who is a successful entrepreneur of a Film Production House.
Serial entrepreneur: In this, entrepreneurs always come up with special plan and unique
business ideas for start up. An individual generally start a new venture and then handover it to
other person with successfully and then moves towards another businesses (O'Neill, 2012). Their
main aim is launch a successful firm with unique ideas and then give its responsibilities to other
person. For example Andreas von Bechtolsheim, who is co-founder of Sun Microsystems as he
operated and left his many of businesses, he moves for Granite Systems which deals in
producing networks switches, so he focused on bringing innovations and creations in the firm
while starting the new business.
Social entrepreneurs: It includes various businesses which started for social people and
considered their well-beingness. They transforms the firm in number of fields or sectors
including health and safety, educations, environment and business development. Entrepreneurs
focus on achieving sustainability by launching profits or non-profits organisations in an
appropriate manner. For example Bill Drayton who is operating these types of firm and also
current chair person of Ashoka.
P2 Similarities and differences between entrepreneurial ventures
In this considered several entrepreneurial ventures which have some similarities and
differences among them as it can be understood in better manner by describing these in an
appropriate way such as:
Lifestyles venture Serial venture
Similarities Similarities
 In this, entrepreneurs are always ready
to invest more funds for increasing
revenues (Bruton, 2010). They focus on
cut-throat competition for money
investments so that higher returns can
be get.
 Entrepreneurs always confident that
 In the serial ventures, individual focus
on bringing new innovative ideas and
use creativity for manufacturing goods
and services and build more efficient
business which are not formed in the
market before.
 Entrepreneurs always create something
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their innovative ideas will helps in
producing effective goods or services to
meet customers demands and
expectation.
 They try to create unique products and
add various features for the purpose of
attracting more customers and generate
high profits or revenues as well.
 Lifestyle entrepreneurs also believes
that they will achieve set targets by
performing best so that growth can be
enhanced and build good image in the
market.
new that not exist at the marketplace so
that number of audiences can be
targeted.
 They concentrate on modifying existing
products by adding some unique values
or features for providing best quality of
items to the targeted customers
(Ahlstrom, 2010).
 Entrepreneurs also try to increase
profitability and productivity by
creating best products and use effective
promotional tools or techniques
demands can bes increased.
Differences Differences
There are several difference between them but
the major thing is that lifestyle entrepreneurs
invests huge funds and brings investments for
achieving higher growth (Burns, 2010). They
also try to increase revenues and create
demands among competitors so that good
brand image can be build.
In this, individuals try to make a better
organisation by performing every tasks in well
manner. They wants to get succeed by
analysing various opportunities so that talents
can be showed for running firm effectively.
Serial entrepreneurs consider the unique
thinking and new innovations that are not
exists. Therefore, entrepreneurs try to satisfy
customers needs and wants with meeting
desired expectations as well.
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Male entrepreneurs Female entrepreneurs
Similarities Similarities
 The businessman always focus on
increasing revenues and build good
organisation in the marketplace.
 They take responsibilities to handle
business in any critical situations and
ready to bear losses while running
business.
 Male entrepreneurs are confident with
their business ideas and creative
thoughts for tackling and maintaining
business in an efficient way.
 In the present scenario, it can be found
that there are various successful
businesses which operated by females.
 They are multitalented because they
can handle various activities in same
time and achieve business goals or
objectives (Chittithaworn, 2011).
 They also perform multiple tasks or job
and maintain business as well as houses
in well manner.
Differences Differences
Male entrepreneurs always get ready to face
several challenges and bear losses while
operating businesses. They are responsible for
making decisions and improving business
performances in an effective ways so that
particular tasks can be achieved. Male
entrepreneurs try to build strong image among
competitors and maximise wealth with
appropriate manner.
The major difference between male and female
entrepreneurs are that women always manage
entire work in very effective manner. They are
polite in their behaviours and also have
different qualities or skills to run an
organisation in better ways. Women can
manage their personal and professional life
with more effective manner.
Therefore, it can be analysed that every entrepreneurial venture are different from each
other as there are various similarities and differences defined which helps in better understanding
of various types of entrepreneurs (Cowling, 2012). They come with some aims or objectives for
accomplishing targets and increase more profits in an appropriate ways.
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TASK 2
P3 Assessment and interpretation of data to analyse micro and small-business impact on the
economy
Micro and small-businesses are contributing more for developing economies of country.
Therefore, it has wide scope for increasing national economy and sustainability for better
development. In this consider those business firm which are entering into the marketplace and
entrepreneurs are bringing new ideas or creativity in the business for attracting number of
customers towards firm. People come and starts a new firm for the purpose of maximise profits
and enhance growth in well manner (Liu and Ledger, 2012). Small-businesses generally starts by
the entrepreneurs by considering less than five employees and investing funds so that business
can be operates and run in an effective manner. They are responsible for bearing any risk or
uncertainties and sharing profits among them.
Small and micro businesses have major impacts on the national economy and country
development as these support in increasing GDP growth rates and contributes more for achieving
sustainability in an efficient manner. It can be understood by undertaking various crises such as
in the time of Brexit, there were very critical situations in the marketplace because government
changed various rules and regulations as well as formulated several legislations and policies so it
affected in the UK market because of environmental forces. It was difficult for every
businessmen or entrepreneurs had faced such problems because of separation from European
Union (EU). Therefore, Brexit affected the business with having various changes such as new tax
policy rates, formulation of legal laws and legislations by the government of UK (Dennis, 2011).
It has major impacts on various processes such as production of particular goods and services,
process of recruitment and selections of candidates etc. here are some other factors defined that
affected on the various areas such as;
Impacts on local: In this defined that small and micro businesses also support in
developing the country with developing the areas of locality. It is best way for encouraging
citizen for better growth. They can prefer local goods and services for development of society.
They focus on starting new venture by motivating and inspiring individuals so that they will be
able to come up with innovative ideas and creations as well.
Regional impacts: They also very supportive in developing regional areas because
entrepreneurs starts new firms that will contributes in infrastructure development and its
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improvements as well. It is an essential for keeping healthy or safety environment by CSR and
performing various tasks or responsibilities in an effective ways (Down, 2010). It also support in
creating more job opportunities for removing unemployment in the country which helps in
fulfilling social demands and provide jobs to the societal people.
Impacts on national economy: Small and micro businesses are very helpful in
contributing in national economy. Entrepreneurs support in increasing growth rates and GDP of
the country. This will be helps in reducing taxations on import and export, customs duties, excise
duty and many more.
P4 Importance of small-business or start up in social economy after Brexit
After Brexit, government of UK formulated number of rules and regulations, policies,
laws and legislations that are very essential for starting a new venture and achieve economy
growth. Brexit denotes as British exit from European Union so there were complex situations for
Britain in the starting or operating businesses. Therefore, government of UK considered all these
and make better plans or procedures for starting and operating business in an efficient manner. It
also affected on the social economy development. Small and micro businesses helps in providing
job opportunities to the social people so that their living standards can be increased and also they
can fulfil their basic demand as well as needs in an effective manner. Small-businesses play vital
role in increasing economic growth with social development (Fassin and Rossem, 2011). These
are essential for providing employment opportunities and reduce the poverty by developing the
particular firms in an efficient manner.
 Micro and small-businesses always considered the customers demands and needs and
also provide better goods and services for achieving predetermined goals or objectives
for organisation.
 They produce and sell products or services in cheap costs so that customers can afford
and buy for satisfying their needs and wants. It will support in increasing production
process that contributes in GDP of the nation. After Brexit, the inflations rates decreased
so entrepreneurs can take advantages more.
 Start ups and micro firms always support in keeping or maintaining healthy environment
by creating buildings and organisations as well. It also contributes in improving
infrastructure of the firm.
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 These are also very helpful in proper balancing of ratio through providing employment
opportunities and reduce the unemployment or poverty in well manner.
 UK government is also giving equal opportunities to every person that they can start
their own venture and run any business (Buelens, 2011).
 Entrepreneurs always focus on getting maximum returns by utilising available resources
so it will support in increasing growth and get maximum outcomes in an efficient
manner.
 Small-businesses also support in increasing profits and contributes in economic
development and increase income level of UK.
Task 3
P5 Determination of characteristic, traits and skills of successful entrepreneurs
There are number of qualities, skills and traits requires to start a new business because
there may be any kinds of risks or complexities to handle the particular firm in various
conditions. Therefore, entrepreneurs should have appropriate skills and knowledge for running
business operations and make favourable decisions regarding adoption of new strategies and
ideas for competing with competitors. Successful entrepreneurs are motivated so that they are
able to tackle business in risky conditions (Hall and Daneke, 2010). They always bring new ideas
and innovations for leading the firm so it is necessary to have better knowledge, ability and skills
which can be charismatic or inherent quality for making effective decisions. They can also adopt
from others to acquire these skills by training, learning and also proper educations for creating
successful organisation.
Generally, to become successful entrepreneur, a person has to be disciplined with his work,
always be motivated and full of enthusiasm. He should not be afraid of taking risks and has a
trait of adapting with the situations,
If we go through the characteristics of some successful entrepreneurs, like Elon Musk,
founder of Tesla and Space X, ranked 21st on the Forbes list of The World;s Most Powerful
People and 53rd richest person in the World. Musk started PayPal cause he do not believe in
other money transfer medium. His work and passion generated a huge amount of $7.5 million.
According to him, a person should not stop in believing in himself, it is all about persistence and
hard work that makes him successful entrepreneur.
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Similarly, Jeff Bezos, founder of Amazon, leading online market website. He failed many
times until he achieved his goal. Same goes with Jack Ma who is the co-founder and executive
chairman of Aliba Group, he is also considered as ambassador for Chinese business and also
included in world;s most powerful people by Forbes (Lenox, 2010). He has applied for 30 jobs
but was rejected, still he believed in himself and work hard to become a successful entrepreneur.
In order to become a successful entrepreneur it is necessary to built a strategy which can
end up to provide a reasonable success. Also it is essential to think out of the box and believe in
oneself. Steve jobs, founder of Apple, was expelled from his own company but he was so
adamant about achieving his goals that he became the Chairman and CEO of Apple Inc.
One of the most significant trait of becoming a successful entrepreneur is to have a strong
mind, so, on losing they will rise up with more confident and with a better plan to achieve their
goals.
P6 Identify various aspects of entrepreneurial personality
Personality can be considered as the persons ability and reflections regarding their mind
set. It can be made by two types as internal and external qualities which helps in making a
personality of individual. Entrepreneur's capabilities also can be effected by personalities as how
they can perform any tasks to achieve long term benefits in an efficient manner. There are
various factors defined that generally influence the mindset and also motivate to others such as:
Agreeableness: It describe the personality of those person who always focus on
organisational goals or objectives and work hard to accomplish these with limited time period.
They also try to maintain the positive relationship by motivating employees so that positive
environment can be created within the firm.
Extraversion: In this consider that it must be required to have the quality of out spoken
so that they can share their ideas, views and opinion regarding business (Ligthelm, 2010). It will
support in reducing hesitations and increase level of confidence by sharing these ideas in well
manner. This is necessary for successful entrepreneurs because it will influence on motivations
as well as mindset.
Conscientiousness: It is related with orientation as this is required to emphasis these for
the purpose of achieving set goals or targets. Entrepreneurs have to be oriented towards business
purposes that will influence the employees mindset.
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Openness to experience: It is another important aspect which is necessary for performing
entire tasks and also achieve predetermined goals or objectives in an effective manner. This is
very important in the personality traits as individuals requires to have abilities or capabilities
regarding experiencing about any situations (Nga and Shamuganathan, 2010). This factor is very
supportive handling the business and tackling the situations or conditions in better ways because
businesses can be affects from various environmental factors that have direct effects on the
operations. Therefore, it must be needed for dealing with number of changes as well as
challenges to achieve goals or objectives in an efficient ways.
Task 4
P7 Background and experience that can foster entrepreneurship
In this defined that, there may be various difficulties which occurs while running business
so entrepreneurs have to be ready for facing number of challenges or problems to operate firm.
Businessman can also face several problems while starting the firm because barriers or conflicts
can arise during the business operations that can affects on the activities or functions in several
ways (Preuss, 2011). An individual can learn more things and get experiences from their
personal life as background have major roles in running the business with effective manner. In
this included colleges, schools, family, friends and society from which an individual belongs.
These helps in making better decisions and take corrective actions so that business can be handle
and also goals or objectives can be accomplished by the entrepreneur as well. Some other
important components are values, educations systems, beliefs and culture also very helpful in
making successful entrepreneurs. They acquires lots of things and learn more from these aspects
so that they will be able to make favourable decisions with the helps of backgrounds or past
experiences.
Experiences generally defines the several conditions or situations which faced by the
individual in past life (Schaltegger and Wagner, 2011). For example, if a person lose their money
during investments funds then he will always scare to take such risk in the next time and fear to
invests funds.
CONCLUSION
From the above report, it has concluded that entrepreneurs are those who have ability to
take risks and make appropriate decisions for the purpose of running an organisation. They
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generally starts a new venture by bringing innovations, creativity to produce goods and services
so that predetermined goals or objectives can be achieved in well manner. This report define
about the various entrepreneurial ventures with relationship of different typologies. It also
discussed about the Brexit and various impacts on economic development of the country.
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