Impact of Small Businesses on the UK Economy

This assignment examines the crucial role small businesses play in the UK economy. It requires a comprehensive analysis of their contributions to economic growth, job creation, and innovation. The focus is on understanding the multifaceted impact of small businesses across various sectors and regions within the UK.

Entrepreneurship and
Small Business
Management

Table of Contents
INTRODUCTION...........................................................................................................................4
TASK 1............................................................................................................................................4
P 1 Types of entrepreneur ventures and explain how they relate to the typology of
entrepreneur.................................................................................................................................4
P 2 Similarities and differences between social entrepreneurship and lifestyle entrepreneurship
.....................................................................................................................................................5
M 1 Diverse range of entrepreneurial ventures to demonstrate an understanding of
entrepreneurship..........................................................................................................................6
D 1 Scope, development and growth of entrepreneurial ventures in the UK.............................6
TASK 2............................................................................................................................................7
P 3 Impact of micro and small business on the UK economy....................................................7
P 4 Importance of small business and business start-ups for the growth of UK social economy
.....................................................................................................................................................7
M 2 Differences small, medium and large business make to the UK economy.........................8
D 2 Impact on different levels of the UK economy at local, regional and national levels........8
TASK 3............................................................................................................................................9
P 5 Characteristics traits and skills of Elizabeth Gooch and Tom Mercer and their differences9
P 6 Aspect of entrepreneurial personality of Elizabeth and Tom reflect their entrepreneurial
motivation...................................................................................................................................9
M 3 Examine different lines of argument relating to entrepreneurial characteristics...............10
D 3 Analyse the characteristics traits , skills and motivational drivers of two successful
entrepreneurs.............................................................................................................................10
TASK 4..........................................................................................................................................11
P 7 Examine Elizabeth and Tom mercer, how personal background can hinder or foster
entrepreneurship........................................................................................................................11

M 4 Link between entrepreneurial characteristics and the influence of personal background
and experiences.........................................................................................................................11
D 4 Personal background and experience influences entrepreneurs both positively and
negatively..................................................................................................................................11
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................13

INTRODUCTION
Entrepreneurship means starting of a new venture or new organization to design a
product or to introduce it at a market place. Basically entrepreneurship is a person who is willing
to establish an organization or enterprise or having the ability to face risk at international level.
Mainly entrepreneurship and small business management means establishing of a new business
to maximise their profit by introducing new and innovative products to attract different sections
of society(Blackburn, 2013). In other words entrepreneurship consist of very broad concept
because it contains all the external and internal factors which comes under small business
management. Apart from this small business management is the term which explains the
management of small- small enterprise emerging at a large extent to establish their footmark in a
present scenario. So all the relevant topics or matter covers under this entrepreneurship and small
business management to establish their footprint at domestic and international level.
TASK 1
P 1 Types of entrepreneur ventures and explain how they relate to the typology of entrepreneur
Entrepreneur ventures means description of various entrepreneur all over the world which
mean there is also various kind of entrepreneur are available in today's advanced world.
Basically entrepreneur is a very broad concept due to which it also have various types for
example small business entrepreneurship, scaleable entrepreneurship, scalable start-up
entrepreneurship and large company entrepreneurship(Hart, 2013)
 Small business entrepreneurship :- small business are those business who have a small
shops or stores near by market having a product like general stores , groceries items,
hairdressers, electricians , plumbers etc. it means small business entrepreneurs are the

person whose main is to live their livelihood comfortably by earning that much only. In
fact they just want to fulfil their basic needs with their small business(Wainwright,
2013). Examples of small entrepreneurs are 3COM, 4COM, zizzi restaurant etc.
 Scalable start-ups entrepreneurship:- their main is to change the world with the product
or business quality by adopting various unique and different policy of doing business. In
fact they believe in consulting with the experience person to establish their business.
Basically scalable start-ups are based on long term vision because they believe in doing
something different by hiring best team.
 Large company entrepreneurship :- Large business changes their products according to
the customer change taste and preferences because they believe in satisfying customer
needs and wants by introducing new and unique product by investing large amount of
fund in manufacturing qualitative product(Carland, 2015). Example of large organization
is TESCO, Marks and Spencer etc.
 Social entrepreneurship :- Social entrepreneurship is based on society oriented policy as
they believe in satisfying their overall society because societies are their first and
foremost priority as this entrepreneurship is based on social benefits only.
Types of entrepreneur is very much related to typology of entrepreneurship because to
understand the term in a brief or their broad concept typology is very much required because it
covers the appropriate details and overall description of types of entrepreneur ventures(Carland,
2015).
Various types of entrepreneurs are present which are different from each other due to its
roles and ideas is stated as follow:- Serial entrepreneurs :- According to this, entrepreneurs which comes into this category
is mainly believes in presenting different and unique ideas of running their business by
satisfying needs of consumers. Therefore it has been understood that they just want to
come up with totally different ideas.
 Social entrepreneur :- Entrepreneurs who just want to develop or uplift whole society by
satisfying needs and demands of weaker sections of society.
P 2 Similarities and differences between social entrepreneurship and lifestyle entrepreneurship
Social entrepreneurship is a firm whose main focus is to fulfil the demand society as their
main focus is to satisfy the needs and desires of overall society by producing product according

to the society. Whereas lifestyle entrepreneurship is the firm whose main focus is to earn more
and more rewards which means they believe in attaining their particular goals as their main
purpose is to enjoy their life by acquiring a rewards and particular level of income(Stewart,
2015).
Similarities and differences between lifestyle entrepreneur and social entrepreneur.
Differences Similarities
The major difference between social and
lifestyle entrepreneur is that the main motive of
social entrepreneur is to satisfy the needs and
wants of the overall society which means that
society is their first priority. Whereas lifestyle
entrepreneur main motive is to earn particular
level of income to enjoy their rest of life style.
Social entrepreneur and lifestyle entrepreneur
are not much similar but still as both of them
are a business entrepreneur though somehow
they want to maximize their profit to run their
business smoothly and effectively.
The other difference between both the
entrepreneur is that social entrepreneur just
want to earn more and more profit by
manufacturing quality product for their
customers. Whereas lifestyle entrepreneur
worried about or want to do something
adventure because they just want to enjoy the
every moment of their business life
Both the entrepreneur are ready to face all kind
of challenges and business risk. In fact both of
them have the leadership quality so that they
can handle or deal with a large organization by
hedging their business risk(Carraher, 2015).
These above are the possible differences and similarities between two types of
entrepreneurship according to their quality.
Similarities and difference between social and lifestyle entrepreneurs is mentioned
below :-
Social entrepreneurs Lifestyle entrepreneurs
Similarities Profit oriented but minimum. They are also believes in
generating minimum revenue.

Differences One of a major differences it is
based on society.
Whereas it is based on their
life style.
M 1 Diverse range of entrepreneurial ventures to demonstrate an understanding of
entrepreneurship
Entrepreneurial ventures contains a vast range of small-small ventures by which easily
understood the term entrepreneurship which means due to the emergence of small business
organization the responsibility of owner also get expanded which require lots of experiences.
Entrepreneurs is the responsibility of hedging risk or controlling the upcoming errors or mistakes
which may occur in the organization. Basically ventures are mainly made just to understand the
term entrepreneur in a broader way so that a firm can easily perform their business task and
activities by having the ability of solving the problems. Somehow establishment of ventures are
perfect way of understanding the term entrepreneur(Carraher, 2015).
Apart this there are number of entrepreneur ventures are available which is mainly
established with different motives for earning maximum profit by satisfying needs of
consumers.
D 1 Scope, development and growth of entrepreneurial ventures in the UK
Due to the advancement in technology in the UK scope of entrepreneurial ventures also
get increased due to the broader concept as it requires a lots of experiences. Due to the
emergence of entrepreneurial ventures UK also get upliftment because of the successful
organization establishing the lots of opportunities for the overall society benefits. Entrepreneurial
ventures plays a very effective role in the development of UK as overall economy is depend on
the small business enterprise only. Small business organization promotes overall upliftment of
society with the introduction of new and advanced products(Paridon, 2015 ).
According to Welter, (2011) there are number of entrepreneur ventures are available in
UK for fulfilling demand of customers by introducing different ideas. In fact these enterprises
are developed by enhancing quality of their product by expanding their business across national
boundaries. Apart from this various companies which are available in UK are Marks and
Spencer, TESCO, Austin Fraser etc.

TASK 2
P 3 Covered in PPT.
P4 Covered in PPT.
M 2 Differences small, medium and large business make to the UK economy
Small, medium and large business organization have a greater impact on the economy of
UK because these businesses plays a very effective role in the growth and development of
economy as due to the emergence of large number of small business organization there is a
millions of people get the opportunity of earning their livelihood. Apart from this small, medium
and large enterprises are very much worried about their growth and goodwill because goodwill is
the base for bright future of the company. Overall economy is depend upon the small and large
firms(Buelens, 2011).
(Source:- Influence of small business on UK economy)
D 2 Impact on different levels of the UK economy at local, regional and national levels
Small business have a greater influence on the UK economy at local, regional and
national levels of the organization because of the broader concept as it covers all the essentials
factors whatever is important and mandatory in UK economy at all the level. In additional
Illustration 1: Impact of Small business on UK economy

economy of the UK has a very vast nature due to which it acquire all the appropriate information
or data become useful in the decision making process. Last but not the least economy of the UK
requires an overall development of the country(Fayolle, 2013).
According to Smallbone, (2011) small business have a greater impact on UK economy
due to its roles and responsibility towards development of whole nation. While comparing with
Chinese market it has been understood that it influence overall development of overall world.
Basically it expanded across national boundaries by offering different and attractive products for
satisfying needs and demands of domestic as well as foreign clients.
TASK 3
P 5 Characteristics traits and skills of Elizabeth Gooch and Tom Mercer and their differences
Business managers have different-different skills and way of running their business it
means that all the existing business managers are different from each other in ever aspect
because every manager have a different-different opinion of managing or controlling the
business. Just like that Elizabeth Gooch and Tom Mercer both have different way of seeing
business or handling the work for example Elizabeth Gooch believes motivate their clients to
improve the working condition of operational efficiency which means she is believing in
grooming others by providing appropriate training and conducting various programs so that
clients may learn new things(Gorgievski, 2011) . It shows that she follow the policy of customer-
oriented which means she thought that if their clients get learned or understood then their
business may achieve their goals. She is the only entrepreneur who believes in guaranteed the
return on investment. Whereas the other entrepreneur Tom Mercer is a day dreamer which means
he is the person who always think first before executing any plan as his business skills and
characteristics is to think first or plan in a mind or he want to start business on meal or to provide
foods and shelter to others. Mainly both the entrepreneur are differentiated from each other in
every aspect and their managing skills and traits also very much differentiated.
But existing managers are differ from these two entrepreneur in every aspect as their path
of managing an organization or controlling the overall enterprise are very much different. For the
establishment of successful organization characteristics plays an effective role to attain the
overall result of the organization(Ascalon, 2011).

P 6 Aspect of entrepreneurial personality of Elizabeth and Tom reflect their entrepreneurial
motivation
Entrepreneurial personality of Elizabeth and Tom mercer is very much attractive due to
their unique idea of seeing business which may attract to other entrepreneurs to execute or apply
different-different ideas of the business with dual motive like satisfy their customers also or
profit oriented also. In fact both of the entrepreneur believes in satisfying customers needs and
desires by fulfilling their customer demand according to their taste and preferences and this dual
theory of business motivated many of the existing entrepreneurs to run their business by
following the theory of Elizabeth Gooch and Tom Mercer to achieve their business goals and
targets(Stephan, 2011).
Motivation is one of the essential or indispensable tool because motivation is somehow
very effective tool which forced an entrepreneur to perform their task or to run their business
smoothly by adopting various effective policies. Apart from this motivation plays a very
important role in the entrepreneur life because leadership quality and encouragement towards
work is motivated from some of the inspirational or achiever entrepreneurs. In fact these two
inspirational entrepreneur act as a motivational tool for the upcoming entrepreneurs and existing
entrepreneurs(Neck, 2011). In other words their overall life is full of inspiration for others and
their day to day activities are also somehow attract or motivate others to reach their goals or to
act in a different way. Motivation is very indispensable for the betterment of every organization
or every firm before establishing a business or introducing the product.
M 3 Examine different lines of argument relating to entrepreneurial characteristics
Entrepreneurial characteristics are very much important and indispensable because it is
very essential for the bright future of their business or to achieve their organization target. In fact
entrepreneur characteristics plays a major role in the establishment of an enterprise as it is a very
mandatory factor( Greene, 2011). An entrepreneur must know how to implement all the
necessary actions or assume all the upcoming errors and mistakes by analysing the past records
or turnover. Apart from this characteristics act as effective tool for the entrepreneurs.
D 3 Analyse the characteristics traits , skills and motivational drivers of two successful
entrepreneurs
Two successful entrepreneurs are Simon Cowell and the other one is James Dyson whose
main focus is to become an successful entrepreneur whereas Dyson is also a brand name. Both of

the entrepreneur are very famous firm of an UK organization because of their attractive features
or way of conducting business. In fact skills are the very much important for the success of an
entrepreneur as with the advanced skills an entrepreneur can achieve their personal targets and
goals(Preuss, 2011).
TASK 4
P 7 Examine Elizabeth and Tom mercer, how personal background can hinder or foster
entrepreneurship
Personal background and experience influence very much to the entrepreneur because it
motivate an entrepreneur towards establishment of new business. In fact Elizabeth and Tom
Mercer is somehow self motivated towards establishment of business to satisfy their customers
needs and wants(Thomas, 2012). Mainly personal background encourage an individual to
establish an enterprise to learn more and more things it means that personal background plays a
very vital role in the entrepreneur life because families are the first teacher or motivational guide
for any person who want to become a firm. Apart from this both the above entrepreneurs
motivated by making a footprint across the globe with their achievement and rewards over their
life. In fact personal background and experience influence very much to an individual as it shows
the appropriate path to every person or individual(Raposo, 2011).
M 4 Link between entrepreneurial characteristics and the influence of personal background and
experiences
There is a very much relation between entrepreneurial characteristics and personal
background as it influence the overall life of an individual. Basically personal background is
somehow most important for a person life because experiences and background is a self
motivated tool towards becoming of an entrepreneur(Do Paço, 2011).
Background and experience have a greater impact on a entrepreneur characteristics
because sometime it act as a motivational tool for individuals towards their goals and objectives
by enhancing their knowledge and skills.
D 4 Personal background and experience influences entrepreneurs both positively and negatively
Personal background and experiences affects entrepreneurs in both way either in a
positive manner or either in a negative manner as every term influence in a both way. Motivated

towards establishing of a business or organization or tu run a smooth enterprise is the positive
affect. Sometime background demotivated an individual towards life(Sampaio, 2012).
CONCLUSION
This report covers all the essential topics or matters which comes under establishment of
an organization or for smooth running of their business. Mainly it covers the business life of two
famous entrepreneur Elizabeth Gooch and Tom Mercer having a inspirational life cycles and
motivate other person towards becoming an entrepreneurs. Apart from this it also contains all the
relevant data and information which is necessary and indispensable while manufacturing of a
product or decision making process because decision making is a very responsible task which
requires appropriate knowledge for an effective decision. Last but not least it also describes the
various types of the entrepreneurs and their typology by explaining their affect on the economy
of UK .

REFERENCES
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