Impact of SMEs on the UK Economy

This assignment examines the significant contribution of small and medium enterprises (SMEs) to the UK economy, focusing on their role in generating employment opportunities. It explores how SMEs will continue to contribute to social economic growth following Brexit. The study delves into the personality traits, qualities, and skills necessary for entrepreneurial success within Talent Plus Company, highlighting their importance in achieving business growth and effective management.

UNIT 9 Entrepreneurship

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Different form of entrepreneurial ventures and identifying the way they relate to
entrepreneurship..........................................................................................................................3
P2 Exploring the similarities as well as differences between Entrepreneurial venture..............5
TASK 2............................................................................................................................................7
P3 Assessing the way micro and small businesses impact on the economy...............................7
P4 Explaining the way importance of small business and business start up will contribute to
the growth of the social economy after Brexit............................................................................9
TASK 3 .........................................................................................................................................10
P5 Determining the traits, skills and characteristics two successful entrepreneurs, which
differentiate them from other business managers.....................................................................10
P 6 Assessing the way aspects of the entrepreneurial personality reflect entrepreneurial
motivation as well as mindset...................................................................................................11
TASK 4 .........................................................................................................................................12
P7 Examining the way background as well as experience can hinder or foster
entrepreneurship. ......................................................................................................................12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14
1

INTRODUCTION
Entrepreneurship is defined as the activity of establishing as well as managing business.
It also involves taking risk in order to gain profit. Small medium enterprise are recognised as
non-subsidiary, independent firms which employ fewer than a given number of employees. In
such types of organisation Entrepreneur is a person who is accountable for managing several
business system operation and activities carried out by people within an enterprise. Role of
entrepreneur in small medium enterprise is to develop suitable strategies for expanding business.
They are responsible for arranging resources for firm for conducting various operations.
The purpose of the report is to examine the several forms of Entrepreneurial ventures. It
has focus on identifying the way various types of entrepreneurial venture are related to Typology
of entrepreneurship. Project emphasizes on analysing the effect of micro small business on the
economy in context of Talent plus company.
TASK 1
P1 Different form of entrepreneurial ventures and identifying the way they relate to
entrepreneurship
The success and growth every organisation is dependent on the skills as well skills of
Entrepreneur. He is a person who establish company and bear risk with the motive of earning
profit. Entrepreneur start business with planning and limited resources. He is the person who is
accountable for the risks and rewards. The entrepreneurial venture emphasizes on delivering
advisory services to early and mid-stage companies. Objective of talent plus company which is
small medium enterprise is to deliver advice related to career for students. It also provides
suggestion to other organisation related to improving human resource practices and management
system within an enterprise. The comparison between entrepreneurial and normal business can
be done in terms of innovation and risk. It has been identified that entrepreneurial venture
generates more profits and revenue as compared to regular organisation. Entrepreneurial venture
is also refers to as an enterprise that facilitates opportunism as well as innovation in order to
increase social or economic value. The several components that helps in recognising the small
medium enterprise are innovation, correlation Etc. These organisations has high ability to adapt
change. Entrepreneur is accountable for success and growth of such firm (Mathieu and St-Jean,
2013)
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Several types of Entrepreneurial Venture are:
Corporate level Entrepreneurial- The entrepreneur in this type of Entrepreneurial venture
believes in renovating plan and improving the quality of product or services. This form of
entrepreneurial venture include two types of physical procedure. These phenomenons are
establishment of new business venture within existing organisation. This activity or development
can be done through innovation or forming partnership or joint venture with other companies
dealing in same industry. The another procedure is conversion of business or entering into new
product or market segment. It is required by entrepreneur in such entrepreneurial venture to
make amendments or modifications in strategies according to the demand of situation. In
entrepreneurial venture like talent plus company a hierarchical system and classification of
factor at each level enables to create typology of entrepreneurial activities. Role of entrepreneur
is to explore as well as capture opportunities for establishing new business.
Social Entrepreneurial -Entrepreneur in such types of organisation have focus on identifying
the appropriate methods or techniques to engage company in social activities. As this strategy
adopted by Entrepreneur will help talent plus company in enhancing brand image. It will also
support firm in gaining competitive advantage. This idea can be used by talent plus and other
organisation with difference in aims and objectives. In such types of entrepreneurial venture, at
time of profit making, business owner supports the social as well as cultural objectives. The
social entrepreneur typology enables business owner to determine or recognise similarities and
differences among wide range of business unit that are engaged in social entrepreneurship.
Enterprise-Level Entrepreneurial-In this types of Entrepreneurial venture, business owner
Emphasizes on revaluation, reviewing and reconsidering the objectives of establishing a
company. An example of business level entrepreneurial activity can be demonstrated in a way
Entrepreneur in Talent plus company is taking high initiative to inspire and brighten the
business. Role of entrepreneur in such types of Entrepreneurial venture is to develop appropriate
as well as effective plans and strategies for managing business in systematic manner.
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Small business Entrepreneurial- Person who is owner of small company or engaged in small
business is recognised as small business entrepreneur. The method or technique adopted by
these people for operating, managing and controlling business activities are referred to as
Small business entrepreneurial. Examples of these types of entrepreneurial ventures are
electricians, plumber, carpenter etc. The entrepreneur in this type of organisation have focus on
hiring as well as recruiting domestic candidates. Objectives of this form of venture is to cater the
need of employees , delivering higher return to shareholder and increasing profit (Murthy and
Paul, 2016)
P2 Exploring the similarities as well as differences between Entrepreneurial venture
The basis of difference between internarial ventures is innovation and risk factor. In
present scenario, it has been identified that the change in market structure and development of
large companies has created big challenges for small medium enterprise to survive in vibrant as
well as highly competitive business environment. This factor has also encouraged small firm like
Talent plus top facilitate innovation and provide additional services to its clients. It has provided
organisation an opportunity to identify suitable ways for increasing its competitive strength.
Objective of entrepreneurial activities or strategies is to influence operations , system, policies
and growth of the fundamental things as well as organisations. Effective Entrepreneur intends to
identify opportunities for development of business or market in which business entity delivers
product or services. As this strategy support company in increasing sales and profitability. Such
types of business owner also have focus on depicting as well as discovering new products for
making resources.
Similarities between Serial entrepreneurs and Life styles Venture
The major similarities between social as well as lifestyle entrepreneurial venture is that
such small medium enterprise have advanced features and high potential for bringing future
improvement in the business. Both the entrepreneurial ventures have innovative skills that has
assist Talent plus in Expanding business operation and fostering growth. Entrepreneur in small
medium enterprise is required to hire as well as recruit talented and skilled employees for
developing effective human resource team. The another similarities between lifestyle
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entrepreneurial and social entrepreneurial venture is that both the organisation have focus on
fulfilling the needs and demands of stakeholders. Other important similarities between these
entrepreneurial business venture is that these firm has high potential to deal with several kinds of
risk and provide appropriate response to complex situations.
Difference between Life styles and social entrepreneurial Venture
The major as well as important difference between both the entrepreneurial venture is
that Social style entrepreneur firm emphasizes on development of innovative ideas and strategies
to establish new business venture. On the other hand, Entrepreneur in Life styles business
venture is more concerned with rewarding people at workplace for their performance and making
essential as well as useful contribution in driving company towards achievement of success
(Schjoedt, 2014.)
Male entrepreneurial organisation Female entrepreneurial business venture
Male entrepreneur has focus on recognising the
appropriate techniques or ways for increasing
growth rate in international market.
Female entrepreneur are more concerned with
identifying the opportunities for expanding
business operations.
The capital invested by male entrepreneur is
high
The capital investment made female
entrepreneur in a company is low.
Differences Differences
The capitalist are male All the business leader are females
Male entrepreneur Cover around 1/3rd of all
entrepreneurs internationally.
Female entrepreneurs are less than males
entrepreneurs Globally.
Comparison between Entrepreneurial venture and Small enterprises
The biggest difference between these two is that Small business usually deal with known
and established products and services while entrepreneur Venture is concerned with delivering
innovative products and attractive services to customers (Foster,2017)
The another major difference is that Small enterprise intends to achieve limited
growth .Objectives of this type of entrepreneurial venture is to earn profit. Whereas, entrepreneur
venture have focus on achieving rapid growth and high return on investment.
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Small medium enterprise like Talent plus has high potential and capacity to cope with
certain risk only. On the other hand, Entrepreneurial venture has high capacity as well as
capability to deal with uncertain risk.
Small medium enterprise contributes a lot towards economic development of the country
and generation of employment for local people as compared to Entrepreneurial venture (Ivy,
2016)
TASK 2
P3 Assessing the way micro and small businesses impact on the economy.
The Economic growth of the nation is based on the small business firm and some other
big organisation. It has been identified from the research that, In Uk small medium enterprise
are contributing a lot towards economic development of country and generation of employment
for local people. This is the reason that legal authority or government in UK is providing
assistance to small medium enterprise in increasing their growth rate and expanding business
operations. Small medium enterprise in UK have focus on designing business policy in
European Union. These types of organisation create a higher proportion of value added in the
services' sector. The contributions of these micro and small business is very essential for
maintaining and balancing the economy. Economic factors are those variables which has direct
effect on the profitability and sales of organisation. This is the reason small medium enterprise
like Talent plus is contributing towards economic development of nation. The effect of micro as
well as small business on the economy of UK can be interpreted by considering several factors
such as:
Control- Entrepreneur or manager in an enterprise is accountable for managing, monitoring as
well as controlling the actions of employees within an enterprise. This activity is performed by
business owner in order to motivate workplace to increase their participation in business
activities. As this factors can have adverse effect on the business performance. It may create
barriers for organisation in providing support to nation in development process.
Organising -It is required by business owner to develop appropriate strategic plan in order to
organise various operations or activities within an enterprise. The role of Entrepreneur is to hire
manager or leaders for assigning jobs or work to Employees. Function of entrepreneur is to
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ensure proper allocation and organizing tasks. As this activity will assist business entity in
accomplishing goals as well as objectives.
There are three primary ways that small businesses contribute to economic development
of UK. Small medium enterprise provide local people with an opportunity to achieve financial
independence, promote innovation, and generates employment opportunities. It provides
innovative ideas to government which can be useful for fostering growth of nation. Contribution
by small medium enterprise is important in order to stabilising economy. Small medium
organisation enables legal authority as well as local people to fulfil their needs by buying
company products or services. The small medium enterprise intends to attract talented and highly
skilled employees those who have high potential to produce new products or services. Big
organisation often benefit from small businesses within the same local community, as many large
companies is dependent on small firms for the completion of various business functions through
outsourcing. For instance,When customers or government supports small medium enterprise like
talent plus company in its growth and increasing profitability. Then organisation will able to pay
high taxes which will be the revenue or income generation source for government. This money
or funds can be utilised by legal authority for development of nation (Kiesner, 2010)
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P4 Explaining the way importance of small business and business start up will contribute to the
growth of the social economy after Brexit
The UK decision to leave EU has created major issues and challenges for small medium
enterprise. It has become difficult for Talent Plus company to operate business in such political
situations. This factors have adverse effect on the growth as well as profitability of cited venture.
Political forces in Business environment has provided cited venture an opportunity to enter into
new market and generate high revenue. It has enabled small medium enterprise to pay high taxes
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Illustration 1: Impact Of small medium Enterprise on UK Economy
Source:(Statistics on small and medium-sized enterprises,2018)

which will contribute to the income generation for government. This revenue or funds can be
utilised by government for developing the society or nation.
It is required by entrepreneur to identify various factors in business environment which
might have adverse effect on company performance. As this strategy will also support manager
or leader in exploring as well as capturing several business opportunities. The small business and
business start-ups can contribute to ‘Brexit’ by bringing the innovation as well as growth to the
community in which the organisation is established or operating. It also provides employment
opportunities to local people and allow domestic citizen to become financially independent.
Small medium firms like talent plus organisation intends to attract highly professional as well as
skilled employees. This factors have great and adverse effect on the labour market. It has been
identified from the research that small business ventures as well as newly established companies
have thigh potential to influence the economic growth and market situation. Such organisation
have power to change climate.
Small medium companies in UK have focus on shaping enterprise policy in the European
Union. The European Commission regard small business venture and entrepreneurship as
important in order to ensure economic growth, innovation, job creation, and social integration in
the EU. However, in authoritative or formalised statistics small medium firms can currently only
be identified by employment size as organization.
Small medium organisation is essential in terms that it such companies contributes to
additional gross value in UK. These firms generate higher ratio of gross value for organisation
operating in service industry (Kourilsky and Walstad, 2014)
TASK 3
P5 Determining the traits, skills and characteristics two successful entrepreneurs, which
differentiate them from other business managers.
Entrepreneurs in an organisation are accountable for risk and rewards generated by
operating or managing business. The role of business owner is to develop self motivation which
will assist them in dealing with complex as well as critical situation. It will also support
entrepreneur in identifying appropriate solution to several business problem. Establishing as well
as managing company requires specialised knowledge about business as well as expertise in
particular field. It is essential for business owner who is planning to establish small medium
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enterprise to develop high risk bearing capacity as well as increase patience level. As this will
help entrepreneur in differentiating themselves from manager in an enterprise. In addition to this
business owner is required to gain high level of problem solving ability. As these skills will help
entrepreneur in applying appropriate solution to various issues faced by company. Mark
Zuckerberg is a famous as well as successful entrepreneur who is recognised as the founder of
the popular social networking sites such as Facebook. He has the Strong sense of basic ethics
and integrity will enable business owner to experience short as well as long term winning. Mark
Zuckerberg have high capability to overcome barriers and bear risk. On the other hand Steve
Jobs also belong to the technical field just as compared to Mark Zuckerberg. Steve Jobs is the
founder of the famous company, Apple Inc. He is a Successful American entrepreneur and was
widely recognized as the design-driven and charismatic leader of the revolution of personal
computer. He has leadership qualities and high decision making power. Mark Zuckerberg is
recognised as serial innovators due to innovative or skilled posse d by him. People like Mark
Zuckerberg enjoy a challenge and have high competitive spirit that make them different from
other people or employees in an organisation. He has unique leadership abilities hat make them
unique leader as compared to other business managers. Mark Zuckerberg has high level of
understanding about creation as well as importance of building business network. Such people
has ability to attract people and develop healthy relationship with other people in
surrounding .Effective and expert business owner has capability to nurture several benefits or
opportunities from relationships and surround themselves with people who can assist them in
becoming more impressive personality .It is required by entrepreneur of Talent plus company to
posses or developed these skills such as Strong leadership qualities, high level of self
motivation, influencing power etc. As this capability will support business owner in motivating
employees to improve their performance at workplace. Leadership qualities will allow
entrepreneur to provide suitable guidance and appropriate guidance to workers.
The another difference between two successful entrepreneurs is that Mark Zuckerberg
uses participate leadership style and Steve Jobs has adopted autocratic leadership style (LI,
GONG and ZHANG, 2013).
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P 6 Assessing the way aspects of the entrepreneurial personality reflect entrepreneurial
motivation as well as mindset.
It has been analysed from the research that business owner with high level of controlling
power can manage as well as organise several business activities or operation in systematic
manner. Every company has its own business structure. Employees or organisation in an
enterprise is accountable for maintaining the culture, structure and healthy working environment.
Behaviour or attitude of entrepreneur has great influence on workers' performance as well as
other operation in a firm. It has been identified from research that every entrepreneur or business
owner have some specialised skills or knowledge that allows them to differentiated themselves
from other people in an enterprise. An individual can become a successful entrepreneur if a
person has the nature as well as potential to lead to an organisation. Internal desire is other
essential element that allows an individual to become successful business owner. In addition to
this Trust, confidence and capability as well as capacity to convey a change at workplace, these
qualities helps person in becoming good entrepreneur. Communication is important for an
entrepreneur in order to successfully run as well as manage company. In addition to this business
owner in Talent plus organisation need s to develop or posses mainly following personality traits
these are Neuroticism, Agreeableness, openness and Extra versions.
Neuroticism is recognised as high level of personality traits. Person with this type of
personality are more likely than average to be moody and experience such feelings as worry,,
anger, fear,anxiety, frustration, jealousy, guilt, depression etc.
Agreeableness, an individual with this type of personality trait have friendly nature.
These type of people believes in supporting other in their development process,.
A person with a high level of openness to experience in a personality traits enjoys trying
as well ass experiencing new things.
The extroverts' entrepreneur has high level of energy (Seavey,2014)
TASK 4
P7 Examining the way background as well as experience can hinder or foster entrepreneurship.
Entrepreneurs have positive behaviour and creative nature. Such people have high
potential to do something unique. This is the reason a person with proficient as well as
professional background can become entrepreneurs. The entrepreneurship skills and experiences
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in business is essential as this factor has direct effect on company success and individual
performance. Entrepreneurs with patience, skills and capability to manage time can become
successful. Management ability and knowledge gained by business owner will help entrepreneur
in managing several business activities, operations and people within an enterprise. Advanced
knowledge,intensive qualities are more important for facilitating innovation. Technical
knowledge or skills will allow individual to solves various technical issues which can create
barriers in operational or production activity. It is required by business owner in cited venture to
increase their knowledge about business trends and consumer or stakeholder needs./As this will
support entrepreneur in making appropriate decisions and will assist business owner in
formulation of plans, policies. It will also help entrepreneur in recognizing as well as capturing
the several business opportunities provided by external forces in business environment.
There are many factors that can affect or influence entrepreneurship these are:
Political factors-Unfavourable political conditions in nation deter business, as investors fear for
the safety of their investments.
Economic forces-This is the important factors which have direct impact on entrepreneurship. It
has direct effect on buying power of entrepreneur. During times of economic recession, there is
decrease in purchasing power and people remain reluctant to invest,which directly affect
entrepreneurship adversely.
Availability of resources-The availability of capital allows the entrepreneur to bring together
other factors and use them to produce goods or services. It may create barriers for business
owner in facilitating innovation.
Entrepreneurial Skill Sets as well as Psychological Orientation-It includes hard working ability,
management knowledge, potential to cope up with risk etc. As this will support business owner
in managing business in successful as well as systematic manner (Sidik,2012)
CONCLUSION
It has been concluded from the report that small medium enterprise plays significant role
in the economic development of nation. In UK these organisations has contributed a lot towards
generations of employment opportunities for local people. Project has successfully demonstrated
the way mall businesses and business start –ups will contribute to the growth of the social
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economy after ‘Br exit’. It has also explained the ways micro and small businesses effect on the
economy.
Study has highlighted some personality traits, qualities and skills that is required by
entrepreneur of Talent plus company to develop. As these characteristics will help business
owner in becoming successful and managing business in systematic manner.
REFERENCES
Books and Journal:
Mathieu, C. and St-Jean, É. 2013. Entrepreneurial personality: The role of
narcissism. Personality and Individual Differences, 55(5), pp.527-531.
Murthy, V. and Paul, B. 2016. Nature of Buyer-Supplier Relationship: Small Businesses in a
Small City. Journal of Small Business Management.
Schjoedt, L. 2014. Entrepreneurial Job Characteristics: An Examination of Their Effect on
Entrepreneurial Satisfaction1. Entrepreneurship Theory and Practice, 33(3), pp.619-644.
Foster, D. 2017. Social Enterprise and Social Entrepreneurship. SSRN Electronic Journal.
Ivy, E. 2016. Lifestyle entrepreneurship. 1st ed.
Kiesner, F. 2010. Creating entrepreneurs. 1st ed. Singapore: World Scientific.
Kourilsky, M. and Walstad, W. 2003. Social Entrepreneurship. 1st ed. Birmingham: Senate Hall
Academic Pub.
LI, H., GONG, Y. and ZHANG, W. 2013. Review of Research on Entrepreneurial
Personality. Advances in Psychological Science, 20(3), pp.403-411.
Seavey, W. 2014. Crisis investing and entrepreneuring. 1st ed. Cambria, CA: Crisis Response
Publishing.
Sidik, I. 2012. Conceptual Framework of Factors Affecting SME Development: Mediating
Factors on the Relationship of Entrepreneur Traits and SME Performance. Procedia
Economics and Finance 4. pp.373-383.
ONLINE:
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Statistics on small and medium-sized enterprises,2018 [Online] Available through:
<http://ec.europa.eu/eurostat/statistics-explained/index.php/Statistics_on_small_and_medium-
sized_enterprises>.
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