Exploring the UK Economy: SMEs, Entrepreneurship, and Growth (ECO222)

Desklib provides past papers and solved assignments for students. This report analyzes entrepreneurial ventures and their impact.

Entrepreneurship and small
business

TABLE OF CONTENTS
Introduction......................................................................................................................................1
LO1..................................................................................................................................................2
P1: Examine different types of entrepreneurial ventures and explain how they relate to the
typology of entrepreneurship.......................................................................................................2
P2 Explore the similarities and difference between the entrepreneurial ventures along with the
scope, growth and development..................................................................................................3
M1 Investigating diverse range of entrepreneurial ventures to demonstrate an understanding of
entrepreneurship in both public and corporate sector..................................................................4
D1 Critically examine the scope, development and growth of entrepreneurial ventures............4
LO2..................................................................................................................................................6
P3. Assess and interpret relevant data and statistics in your mini-research, to illustrate how
micro and small businesses impact on the economy...................................................................6
P4: Explain the importance of small businesses and business start-ups to the growth of the
social economy............................................................................................................................7
M2: Evaluate the differences small, medium and large businesses make to the economy,
applying relevant data and statistics............................................................................................9
D2 Critically examine the ways small businesses have an impact on differentlevels of the
economy in a global, regional, national and international context............................................10
LO3................................................................................................................................................11
P5 Carry out a mini-research to determine the characteristics, traits and skills of two
successful entrepreneurs, which differentiate them from other business managers..................12
P6 Assess how aspects of the entrepreneurial personality as discussed in P5, reflect
entrepreneurial motivation and mindset[M3]............................................................................16
LO4................................................................................................................................................18
P7 With practical examples obtained through your mini-research, examine how background
and experience can hinder or foster entrepreneurship...............................................................18

M4 Analysing the characteristic traits, skills and motivational drivers of successful
entrepreneurs providing examples of well-known British entrepreneurs..................................21
D1 Critically evaluating how their background and experience has influenced them both
positively and negatively using examples.................................................................................24
Conclusion.....................................................................................................................................27
References......................................................................................................................................28

Introduction
Entrepreneurship is referred to as a process that includes launching, designing and running a new
mostly small business. And the people who are involved in creating these businesses are known
as entrepreneurs. These entrepreneurs need to take various risks for their business success and to
gain benefits through modification and improvements in the offered goods and services through
innovation and creativity. The economy of a country is highly influenced by revenues and tax
which generated from various SMEs. In the current report, discussions are made regarding
various different types enterprise that is responsible for contributing in the growth of UK’s
economy. The report will also be discussing about the importance of small business and mindset
of entrepreneurs required for effective business operations. Lastly, the report states different
factors that supports or hinders the success of an entrepreneur.
1

LO1
P1: Examine different types of entrepreneurial ventures and explain how they relate to the
typology of entrepreneurship.
Entrepreneurship is referred to a method that are used by individuals called entrepreneur for
developing a business venture using their innovative ideas and creativity along with skills and
other characteristic.
Different types of entrepreneurial ventures
Small business entrepreneurship: These startup businesses is run and managed by owners along
with few employees (Arregle, et al 2015). The overall revenue generated by such organization is
low and concentration of this organization is mainly upon attracting clients towards the business
activities and development of various services and products with innovation and creativity. The
main partners of this type of business are friends and family.
Scalable startup entrepreneurship: Businesses of this category start their business venture with
new and creative ideas and focus on innovative products to the associated customers. These
organizations search for new investment from different venture capitalists with their scalable
structure (Boyd et al 2017).
Large company entrepreneurship: Large organizations have a specific life cycle. This
organization focuses on developing and offering new services and products to customers
business longevity and for sustainability (Sainidis, and Robson, 2016). With the changing
customer demands and trends, high competitive market, and limitation from legislation large
organization cannot easily bring new idea implementation for a new market.
Social entrepreneurship: The organization falling under this category of entrepreneurship
mainly focuses on solving social problems and working for social welfare with their services and
products (Dees, 2017). Social enterprises aim in creating a safe and better world the community
with government support.
2

P2 Explore the similarities and difference between the entrepreneurial ventures along with the
scope, growth and development
Table 1: Similarities and difference between different entrepreneurial venture
Business sectors Scalable start-up
entrepreneurship
Large scale
business
entrepreneurship
SMEs (Small and
medium sized
enterprises)
Social
entrepreneurship
Goals and objectives The main of this
business
organization is to
focus on offering
customers with new
and innovative
products for
attracting investors
and for earning
profit.
Organizations aim
for attaining
sustainability in the
current market
through new
services, products
along with
marketing strategies
(Eggers, and Song,
2015).
SMEs may or may not
have a definite goals
and objectives. They
are focus on achieving
business growth and
lesser profit.
Social venture aim
for providing high
quality products or
services for well fare
of the society ((Dees,
2017).
Risks High risk because
of high investments
Medium risk due to
high brand name
and value.
Competition is high but
risk is low due to
innovative ideas and
creativity
No high risk
Number of employees The numbers of
employees are
dependent on the
overall size and
structure of the
venture (Karadag,
2015).
The employees of
the organization is
more than 1000
Employee not more the
50.
Employees are
employed according
to the organizational
size.
3

M1 Investigating diverse range of entrepreneurial ventures to demonstrate an understanding of
entrepreneurship in both public and corporate sector
Public sector:
Organizations under public sector are controlled directly or indirectly by the government of a
country (Morris, et al 2018). Organizations in this sector are offered with investments by the
regional and national government for supporting its business functions and operations. And
various private organizations offer strategic supports to the Public organizations. Organizations
belonging to public sector perform in different sectors for offering various product and services
of high quality to customers with no or less charges for their well being. And public organization
does not emphasis on earning profits and works for offering social development and welfare.
Corporate sector: Organization belonging to corporate sector are owned by public, group or
individually but basically run privately. Corporate organizations need to works for developing
various strategies for marketing for attracting customers regarding the offered product and
business services with an aim to earn sustainability, profitability and revenue earning (Krueger,
2017). In most cases, organizations under this corporate sector are large and scalable
entrepreneurship ventures focusing over achievement of sustainable development considering in
raising competitive edge.
D1 Critically examine the scope, development and growth of entrepreneurial ventures
Different entrepreneurial ventures have different mission, vision, aims and objectives impacting
the overall organizational scope (Karadag, 2015). When the organizations can effectively
develop and launch products meeting and satisfying the demand and expectation of the
customers, it has been observed that that organization can sustain the current competitive market
for extended time through high profit margin. Thus, for attaining success of the entrepreneurial
ventures it is expected that the business strategies applied for performing various business
practice and product development must be according to the present customer demands and
trends. For a success business, the organization need to develop and maintained a proper
organizational structure that supports effective communication among various employees and
department for discussing and free flowing business activities with minimal conflicts (Carraher,
et al 2016). Moreover, the overall growth of any entrepreneurial ventures is highly dependent
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upon the product offered and quality maintained for satisfying customer’s, pricing expectation
along with various sustainable strategies.
5

LO2
P3. Assess and interpret relevant data and statistics in your mini-research, to illustrate how micro
and small businesses impact on the economy.
SMEs support in development and growth of economy and UK is the perfect example. From the
records it has been analysed that in UK the organisation in private sector is about 5.5 million that
are offering and enhancing availability of employment opportunities in the current market. From
records it has been observed that private organisation has effectively increases the job
opportunities to about 97000 (Bridge, and O’Neill, 2016.).
The SMEs is effective in generating a large amount of job opportunities in the UK, in number it
is approx to 15.7 million. The organisation falling under private sector has improved and
developed their business to more than 60%. The SMEs are capable of contributing towards
annual turnover of the sector to up to 1.8 trillion comprising about 47% of the UK.
There are number of business organisation in the UK’s private sector that is effective in offering
high business turnover along with employment opportunities. It has been estimated that in UK
alone there are 7200 business that are contributing in the turnover development and employment
creating high impact on UK’s economic development (Cowling, et al 2018). The total
employment opportunities offered by SMEs in UK was about 15.7% of the total and 1.8 trillion
of turnover. About £ 5.7 Billion has been calculated in the year 2014-15 offering of annual
turnover offered by micro businesses at the global level.
6

P4: Explain the importance of small businesses and business start-ups to the growth of the social
economy.
For maintaining the overall expansion of the present social economy, it has been found that the
start-up businesses are very influential in various countries (Zhao, 2016). Startup businesses are
gaining sustainability even in the current edge of globalization and competition due to new and
innovative product and services ideas for meeting the current requirements that are attracted to
products that are slightly different in comparison to other product offered by different businesses.
Moreover, startup businesses sometimes are effective in capturing the current competitive
marketing in a very fast arte and can successfully generate revenue at higher rate in small time
period. For doing so, the organization chooses to offer high business tax to the country
supporting in country’s economic growth. In most cases the startup business prefers to hire
employees for performing various bisness practices reducing the overall issues of unemployment
(Rhodes, 2015).
Figure 1: SMEs’ contribution in UK
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From the studies it can be found that there are some startup venture that fails to offer high wages
to the employees mainly due to lack of organizational capitals and prefer hiring lesser but skilled
employees. Startup for gaining the attention of customers in local level involve in performing
various CSR activities that is very supportive in enhancing the current value and for minimizing
various problems of the community (Mauer et al 2017). Some of the example of CSR activities
includes offering education opportunities in rural areas and offering training to people with low
financial stability. Startup is contributing effectively for raising the gross GDP of the country.
8

M2: Evaluate the differences small, medium and large businesses make to the economy,
applying relevant data and statistics.
Small and medium businesses in the UK are comparatively high. The organization of small and
medium-sized has presently has captured a larger fraction in every sectors contributing the
growth of UK’s economy. The larger businesses organization is earning their revenue through
the offered product quality and due to high brand image and value (Kozubíková, et al 2015).
Main purpose of business organisation is to attract new talents and freshers towards their venture
with an intention of grabbing new creativity and innovative ideas for attaining competitive
benefits by bringing improvement and changes in the business processes. As per the illustration
provided below it can be stated that different enterprise irrespective of their effectively
contributes in the growth and development of the UK’s economy by offering employment
opportunities raising the overall standard of people. On the basis of national statistics, it can be
stated that more than 99.9% of SMEs organization there are related to enterprise with 62% in
sole traders, 28% organization and 10% in partnership. In the annual year of 2015 and 2016 year,
UK has generated overall revenue of more than 1.8 trillion. The rate of employment in UK is
rising due to increasing SMEs offering about 5.6 million jobs for serving the customers with
effective services and products.
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