The Impact of Small Business on the Economy of the United Kingdom

Although the small businesses have little contribution with respect to the income to the economy and the houses are not considered to be a relevant part of the economy but they are indeed very important and contribute to a large scale development ( Terjesen , Hessels and Li 2016). Statistics Although the small business organizations being discussed have less than 10 people who are employed for the operations, such business contribute to around 35% of the employment and 19% of the turnover which is present in the given industry The combined turnover

THE IMPACT OF SMALL BUSINESSES ON THE
ECONOMY.
NAME OF THE STUDENT

INTRODUCTION
 The given presentation will assess the impact of small business houses on the economy of
the United Kingdom.
 A small business can be described as one which employees less than 250 employees.
 In the year 2017, there were around 6.2 million SMEs in the United Kingdom which was
more than 99% of the business.

STATISTICS
 The micro business enterprises have around 0-9 employees working towards the success of
the organization.
 There were around 5.7 million micro business houses in the United Kingdom as on 2017 out
which 96% comprises of business.
 Although the small businesses have little contribution with respect to the income to the
economy and the houses are not considered to be a relevant part of the economy but they
are indeed very important and contribute to a large scale development (Terjesen, Hessels
and Li 2016).

STATISTICS
 Although the small business organizations being discussed have less than 10 people who
are employed for the operations, such business contribute to around 35% of the
employment and 19% of the turnover which is present in the given industry
 The combined turnover annually of the SMEs was around £2 trillion in 2017 which is
around 50% of the total private sector turnover in the business in the United Kingdom
 The total employment in the given segment was around 16 million which means that it
comes up to 62% of the private sector employment in UK (Kickul et al. 2013).

THE IMPACT OF MICRO AND SMALL BUSINESS
 With respect to a medium business enterprise, around 250 people had been appointed for
the given purpose, whereas in the case of a small business just 9 people are employed.
This ultimately results in a limited opportunity for employment.
 However, a good aspect is that the businesses have been increasingly considerably, which
ultimately leads to better opportunities.

CONT.…
 Although the medium business enterprises are larger in size, their impact on the economy
of the country United Kingdom, is not as positive as that of the small business houses.
 Around 98.9% of the businesses in the country comprise of small and micro business
houses. There exists intense competition in this segment (Mason and Harvey 2013).

IMPACT OF SMALL BUSINESSES AND START UPS
 The small business houses have the following impact on the economy of UK:
 Turnover
 Employment (Burns 2016.)
 Growth

CONTRIBUTION

Source: Mason and Harvey

HENCE,
 It can be stated that London seems to be the primary city of hub in the United Kingdom.
 Although small in size the SMEs have changed the economy in the country (Bosma 2013)
 The competition is quite fierce and it supports large scale employment as well

REASONS BEHIND THE CHANGE
 Although as observed there exists recession in Europe and thus the number of jobs, have
been decreasing considerably. This has given rise to the increase in small businesses in
order to boost the economy of the country.
 This rate is quite different from the ones in other countries.
 Certain countries are unable to contribute much towards the welfare of the business
enterprises and this leads to the superiority of UK as a hub for small businesses.

CONCLUSION
 The SMEs form the backbone of the economy of UK.
 The Cambridge and London region have the maximum number of small businesses.
 Small businesses tend to increase the economy of any country and must be encouraged.

REFERENCES
 Bosma, N., 2013. The Global Entrepreneurship Monitor (GEM) and its impact on
entrepreneurship research. Foundations and Trends® in Entrepreneurship, 9(2), pp.143-248.
 Burns, P ., 2016..Entrepreneurship and small business. Palgrave Macmillan Limited
 Kickul, J.R., Gras, D., Bacq, S. and Griffiths, M.D. eds., 2013. Social entrepreneurship. Edward
Elgar Publishing Limited.
 Mason, C. and Harvey, C., 2013. Entrepreneurship: Contexts, opportunities and processes.
Abreu, M. and Grinevich, V., 2013. The nature of academic entrepreneurship in the UK:
Widening the focus on entrepreneurial activities. Research Policy, 42(2), pp.408-422.
 Mason, C. and Harvey, C., 2013. Entrepreneurship: Contexts, opportunities and processes.
 Terjesen, S., Hessels, J. and Li, D., 2016. Comparative international entrepreneurship: A
review and research agenda. Journal of Management, 42(1), pp.299-344.

Thank
you