The Role of SMEs in Economic Development
Added on 2020-01-23
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ENTREPRENEURSHIP1| P a g e
Table of ContentsIntroduction.......................................................................................................................................2Methodology.....................................................................................................................................3The different types of Entrepreneur ventures and their relation......................................................3Similarities and difference between entrepreneurial ventures.........................................................4Impacts of small and micro business.................................................................................................6Contribution of SME’s in economy after Brexit..................................................................................7Skills and traits of successful entrepreneurs......................................................................................9Importance of entrepreneurial personality helps in business .........................................................10Effects of background and experience on entrepreneurships.........................................................10Conclusion.......................................................................................................................................11Reference List..................................................................................................................................112| P a g e
IntroductionEntrepreneurship has helped in economic growth for various countries such as China and theSouth Asian nations. The growth of small business and business start-ups has helped in theeconomic progress of the countries and reduction in the level of poverty by the countries thathas promoted entrepreneurship. Hence the UK government is also promoting the idea ofentrepreneurship after ‘Brexit' for economic growth. In this research report, the researcheracts as a consultant and discusses the opportunities the entrepreneurs have in the UK andwhat the barriers the start-ups face. The different types of entrepreneur ventures, as well astheir relationships, are discussed. All the different forms of entrepreneurial ventures havecertain similarities and some differences which are also discussed. The limitations theentrepreneurs face and also how the personals influence the motivational of the entrepreneuris elaborately explained. Entrepreneurship appeared to be successful in some countries andalso help in income distribution along with increasing employment and governmentinfrastructures. The government revenues also increased in the form of taxes or foreignexchange rates by supporting trading between natures. This report highlights the impacts ofsmall business on the UK economy and some examples of successful entrepreneurs.MethodologyThe researcher explains the following report as a consultant to an entrepreneur. Theevaluation of the success of other SMEs is discussed. Secondary data is used for preparingthis report. Examples and information from websites, journals, and books are collected todiscuss the effect of entrepreneurship in the economy. The method is qualitative and manypieces of evidence of successful companies are highlighted.3| P a g e
P1. The different types of Entrepreneur ventures and their relationEntrepreneurs are individuals who prefer to run a business on their own by taking the risksexisting in an economy. The people take initiatives to run small businesses and enjoy thebenefits of those businesses. The entrepreneurs are the decision maker of their own business Irespect to the production and supply of good and services. The capital initially invested isrisky and profit or loss is shared within that small business. The ideas through which thesmall business is setup are innovative and the process of designing along with channelizingthe new ideas in the form of business by an entrepreneur is called entrepreneurship. Throughentrepreneurship, the entrepreneurs get the freedom to work with different and unique ideas. There are different types of entrepreneurial ventures and the characteristics of each aredifferent. There may be small entrepreneurships which may be developing for daily purposes.There may be travel agents, small grocery shops, beauty parlours, consultants or etc. theprofits earned are self-sufficient and provides almost 50% self-employment opportunities inthe economy (Fairlie and Holleran, 2012). The other type is scalable start-up entrepreneurshipwhere the investments are made to open a company based on some visions. Financialinvestors such as the venture capitalists may invest if they find the ideas interesting and thebusiness operations are based on some model. Funding is done through loans from somefinancial institution or through some family or friends. Such start-ups are based oninnovations and have been successful in the areas such as Silicon valley, New York, SouthAsian regions such as Bangalore, Israel, Shanghai which attracts risk capitals. Another typeof entrepreneurship is large companies. They have greater hold in the market however the lifecycles are finite. Along with the change in consumers tastes and preferences or demands theinnovations related to the products shall also change. Change in technologies requireschanges in innovations to introduce new products in the market. Another type ofentrepreneurship is Social in nature. Social entrepreneur’s tries to make the economy a betterplace and hence focuses on producing goods and services that might benefit the society. However, there exists the different type of entrepreneurs depending on the mindset of theindividuals. The past studies have explained the various topologies in entrepreneurs. There isan entrepreneur who is always sceptical and links the success of a business with luck anddestiny. There is also craftsman entrepreneur or an opportunist’s entrepreneur. Miles andSnow state there are four types of entrepreneurs such as prospector, Follower, innovator and areactor (Zhao et al. 2010). The conceptualisation of the ventures helps in distinguishing the4| P a g e
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