Entrepreneurship: Small Business Contribution to the UK Economy

This essay critically evaluates the contribution of micro and small businesses to the UK economy over the last three years, supported by recent data. It discusses the importance of these businesses and start-ups to the overall growth of the UK economy, highlighting their impact on revenue, employment, innovation, and social development. The analysis covers the role of small firms at local, regional, national, and international levels, emphasizing their contribution to globalization and economic recovery. The essay concludes that small and medium-sized businesses are crucial for the UK economy's growth, fostering innovation, increasing productivity, promoting social development, and providing opportunities for disabled individuals.

ENTREPRENEURSHIP AND
SMALL BUSINESS
MANAGEMENT

 Introduction
 Evaluate critically the contribution of
micro and small businesses to the U.K
economy in the last three years. Please
support your analysis with recent data
 Discuss the importance of small
businesses and business start-ups to the
growth of the UK economy
Table of contents

The large-scale operations bring a lot of revenue
to the economy but the micro and small business,
which have popped up recently also helped to
generate employment in huge numbers and
brought about different opportunities in the
recent periods. There are increasing opportunities
for the micro and small firms and this was due to
the fast development of the technologies and the
increasing uses of the Internet.
Introduction

These businesses, during the last decade have earned
huge profits and have provided employment opportunities
to the people of the country in huge numbers. The small,
micro and the medium industry had been a fortunate
thing during this situation. The amount of employment
which was escalating had been accountable for the
reduction of unemployment problems in the local areas.
There has been an increase in the technologies and
innovation as these companies started to collaborate with
different successful businesspersons all over the world
(Burns, 2016). These companies have helped to increase
the overall financial conditions and have helped the large
companies to recover from the recession.
. Evaluate critically the contribution of micro
and small businesses to the U.K economy in
the last three years. Please support your
analysis with recent data.

Impact of small and micro business on the economy of the country
and the regional area
Revenue: According to research, these types of organizations have
started to contribute 220million pounds of revenue in the each year and
some of the money has been collected as tax, which in turn would be used
by the UK government for the betterment of the country. These companies
turn out to be a complementary to the revenue involvement of UK and
these companies were incessantly advancing in term of modernization and
expertise, which helped in a noteworthy growth of the country. During the
previous decade, there was a very bad condition of the UK economy and
the people of the country had been facing bad financial conditions.
Employment: During a research in 2017, almost 5.7 million of these
companies have started its business in the last ten years. 16.1 million
people have been employed in these years and his companies have also
given opportunities to the people who are disabled and to the people who
are not so well of in this sector. In the late 1900’s, many cottage industries
have popped up and many of such industries have been developed into the
small and medium sized businesses.
Examine the role of small firms and their
contribution to the economy at local, regional,
national, regional and international levels.

Impact of small and micro business on the global
economy
As more and more of the small and medium sized business
have risen, there has been an increased chance of
globalized business operations. These companies have
helped to increase the overall financial conditions and have
helped the large companies to recover from the recession.
There has been an increase in the technologies and
innovation as these companies started to collaborate with
different successful businesspersons all over the world.
These companies are very elastic and offer many chances
for the local economy to grow. The operations of the
business have increased the exports and imports of the
country and this has helped to earn revenue from abroad.
Examine the role of small firms and their
contribution to the economy at local, regional,
national, regional and international levels.

UK had been facing some recessive periods and the overall economic
structure was bad. The social and economic system of UK can be
understood as combination of socially inspired business organizations that
have the aim of providing the people of the nation with a good culture.
There are different ways through which the small and medium sized
businesses have affected the economy and have been of great
importance.
Innovation: The small and the large business bring innovative ideas and
techniques to the operations of the business. As these businesses are
much smaller, there is a chance for these companies to change and adapt
to newer trends of the market. Consequently, these companies lead the
way for the newer technologies and assist them to make superior and bold
investments.
High productivity: The small businesses and the startups are very
flexible in their approach and this helps these companies to settle in the
occasional changes that occur in the market due to the changing demands
of the market. Due to the advancements of the technology and the
increase in innovation, these companies can now implement different
schemes for their marketing and consequently, this increases the overall
productivity of the company.
Discuss the importance of small businesses
and business start-ups to the growth of the
UK economy.

Economic growth: Almost 5.5 million of small and medium sized business have
recently started its business and have provided over 16 billion employments all over UK.
Increase in the employments has increased the overall per capita income of the country,
giving many opportunities to the people who were unemployed. Increase in the jobs has
also increased the standard of living of the local people. These companies not only
provide employment, but also provide the UK government with huge revenue so that the
overall infrastructure of the country can be developed.
Promoting Social development: Due to the decrease in the employment problems,
there has been a total change in the overall market structure. It has now been made
compulsory that all the companies of UK must invest at least a nominal amount to the
society (Storey, 2016). These companies had been of great importance as these
companies have build schools for the younger people and started awareness programs
for a sustainable environment. These companies have also started to take care of the
local areas so that the local culture and the environment are not affected.
Providing opportunities to disabled individuals:
The small and medium businesses have provided many opportunities for the disabled
and have opened several skill schools so that these people become skilled in a specific
sector and help in the operations of the business. The startups, to reduce the cost of
human capital, have offered jobs to the people that are disabled. This has helped them
to make a better career.
Discuss the importance of small businesses
and business start-ups to the growth of the
UK economy.

From the above study, it has been
concluded that small and medium sized
business have been of great importance to
the growth of the UK economy. Moreover,
the above study has also helped to assess
the impact of small business on the
economy of UK. With the help of the above
study, it has been determined what the key
aspects of an entrepreneurial mindset are
and these have been assessed in brief.
Conclusion

 Burns, P., 2016. Entrepreneurship and small business.
Palgrave Macmillan Limited.
 Hillary, R. ed., 2017. Small and medium-sized
enterprises and the environment: business imperatives.
Routledge.
 McKenzie, D. and Woodruff, C., 2016. Business practices
in small firms in developing countries. Management
Science, 63(9), pp.2967-2981.
 Storey, D.J., 2016. Understanding the small business
sector. Routledge.
 De Wit, G. and De Kok, J., 2014. Do small businesses
create more jobs? New evidence for Europe. Small
Business Economics, 42(2), pp.283-295
Reference List

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