HNBS 309 Entrepreneurial Ventures: SMEs Impact and Analysis Report

This report analyzes the impact of Small and Medium Enterprises (SMEs) on the UK economy, emphasizing their crucial role in job creation, economic growth, and innovation. It explores different types of entrepreneurial ventures, including small business, large company, scalable startup, and social business ventures, highlighting their characteristics and contributions. The report delves into the influence of SMEs, including their flexibility, customer-oriented approach, and focus on innovation. It also provides a comparison between corporate and public entrepreneurship, outlining their similarities and differences, and discusses the merits of entrepreneurship in achieving competitive advantages in the UK and international markets. The report concludes by assessing the overall significance of SMEs as the backbone of the UK economy, supported by relevant data and statistics.

ENTREPRENEURIAL
VENTURES

Table of Contents.
INTRODUCTION ..........................................................................................................................3
MAIN BODY...................................................................................................................................3
LO1..................................................................................................................................................3
P5 Impact of SMEs on the economy............................................................................................3
M3 Interpretation of data in specific reference to SMEs.............................................................5
D2 Influence of different businesses on different levels.............................................................5
LO2..................................................................................................................................................5
P6 Elaborate the similarities and dissimilarities between corporate and public entrepreneurshi 5
M4 Merits of entrepreneurship resulting in competitive advantage............................................7
D3 Benefits entrepreneurship can bring to the company.............................................................7
CONCLUSION ..............................................................................................................................7
REFERENCES................................................................................................................................1

INTRODUCTION
Small-to-medium enterprise is a kind of business which is small or can be work from
home office and sometimes can be a larger enterprise (Martin and et.al., 2020). According to
European Union, the term SME has been defined as a company, association or enterprise having
not more than 500 employees and working as an independent entity. But after the Brexit, SMEs
as per the British government has employees not more than 250. The article will discuss the
impact of SMEs on the UK's economy and its influence. The project will further elaborate the
relationship between public & corporate entrepreneurship and also differentiate between them.
MAIN BODY
LO1
P5 Impact of SMEs on the economy
Before starting with the impact of SMEs, firstly there is a need to understand the concept
of entrepreneurship. The term entrepreneurship refers to the process of establishing an
organisation or a business and the person who does is known as entrepreneur who with the help
of creativity or innovation launch it. In today's world, scope of entrepreneurship is very vast by
providing new opportunity to the customers by fulfilling the demand with the help of innovative
activity. It also helps to generate profit for the country as well as the entrepreneur and also
providing jobs. There are various kinds of entrepreneurship ventures but the primary used are:
 Small business venture: This venture mainly support the innovative technique and apply
to the current products. This business is mainly run with a motive to work on a small
scale rather than looking for expansion (Taylor, 2022). These are created with a sole
owner or by family and friends. Davison Canners is the illustration of this type.
 Large company venture: This entrepreneurship is opposite of small venture which
consistently follows innovation and always try to expand as they already have capital and
resources to grow. Tesco Plc is the retailer tycoon which is the correct example of this
venture.
 Scalable startup venture: The characteristic of this venture is that they know the
company's potential for growth. They rely on the innovation and technology for rapid
growth. For accessing funds, the startup business obtain funds from angel investors or
capitalists. Facebook is the example of this venture.

 Social business venture: The important characteristic of this venture is that it worked for
resolving the social hurdles rather than earning profits (Needle, 2021). The aim is to work
for the betterment of society by developing products and services with a little goal to
make revenue. Cafedirect is the apt example of this venture.
SMEs plays a key important role and contribute a significant amount to the country's
economy. From street stores to small startup firms, the primarily companies working in the UK
are SMEs and according to Parliament data, there were around 5.7 million SMEs capturing
around 99% of the businesses in 2018. They are considered the heart and soul as well as
backbone of any strong economy because they provide growth and reduce the unemployment
rate within the country. These small enterprises account for almost 44 % of the workforce
resulting in generation of 50% of total revenues of UK's companies. But with the current Covid-
19 pandemic and Brexit crisis tense the situation makes the British economy weak (Brown,
Liñares-Zegarra and Wilson, 2019). The result of pandemic witnessed that 80% of the business
revenues are diminishing, facing difficulty to pay debts, failure to retain workforce and supply
chain are the causes.
The key factors and impact of SMEs to the economy of UK are:
 Create employability: The backbone of UK generate the opportunities for employment
and as per view of the FSB, the contribution of SMEs on UK employment is around
3/5th with a 16.8 million in count of numbers.
 Flexibility to change: The another impact of the small enterprises is that they are agile
in nature and always ready to modify the projects to achieve the goals considering the
circumstances (Amuda, 2020). They are dynamic rather than being static which
provides the companies a competitive advantage which is an essential ingredient in the
current digital world.
 Boost regional community: Most of the SMEs in UK are in the tourism industry which
results in the attraction of customers to the local community and increase in the
exchange of knowledge and cultural events. This would boost the local businesses such
as handicrafts, local guides, heritage visits etc.
 Customer-oriented approach: The UK's small enterprises emphasized on the local
products to satisfy the customers which assist in driving growth and success of the
products which are being manufactured locally or British oriented. This would not only

help in maintaining the livelihood of the local businesses but also contribute in
preserving the environment.
 Focus on innovation: Innovation is important and plays a significant role for the SMEs
and UK. The new techniques aid to improve the production activity which results in the
cost effective strategy and incorporate new operational methods of selling and
distribution. It assists the country in leading in the research, development and innovation
programme.
M3 Interpretation of data in specific reference to SMEs
Therefore, from the above data it is clearly visible that small enterprises are the backbone
of the British economy and their contribution is not only in the country's growth but has been
important for the individual as well as local community success.
D2 Influence of different businesses on different levels
Since, different businesses like large scale, small scale, social or scalable startup ventures
has a great influence at the national as well as international levels. Many companies manufacture
products at the regional level and sell it in the global market. This provides job opportunities at
the national country while providing services to the international markets.
LO2
P6 Elaborate the similarities and dissimilarities between corporate and public entrepreneurship
Corporate entrepreneurship refers to the process of expansion of the business with the
help of launching new products, services within an organisation through entrepreneurial activity
so to generate more profit. They generally have flat organisational structure with a risk taking
approach and open communication. Whereas, public entrepreneurship is the method of
generating creativity or innovation and applying innovative ideas in the public sector. This is
required for the welfare of the society and is done by the national government or organisations.
Considering both the entrepreneurship ventures, probably there are certain similarities
between them such as:
 Workforce growth: At both the venture, there is a probability for the career growth.
The health and safety of the employees of an organisation is considered a primary
responsibility of the ventures. The employees of these organisations provided with
different tasks and with a proper feedback they are completely experienced (Cassetta and

et.al., 2020). Different programmes, training and courses are formed for the employees
to improve their skills, knowledge and learning in the specified interest.
 Open to change: Due to the innovation and technology embedded at workplace both the
ventures are ready to adopt the change (Bodawala, 2017). They are willing to amend
new possible modifications which results in the growth and provides competitive
advantage to them.
 Work for the customers: The customers are different for each venture but the operation
are considered to be customer-focused. They ensure high service to the customers and
always ready to improve which results in making the resources being used effectively.
 Customer care and support: The both venture are working to support the audience.
The corporate one is working to provide better experience to customers while public one
are in the support to satisfy the citizens of the country.
 Mentoring: In both the entrepreneurship, the people working in the given sector are
ready to share their experience while mentoring others. This could be done either
formally or informally. They would guide others to bring best out of them.
There are some differences which could be explained with the help of table:
Basis Public Entrepreneurship Private Entrepreneurship
Meaning This means the authority is under
the government whether it is
regional, state or country level.
This means that business which is
being owned and authorized by the
owners or stakeholders of a private
company.
Aim or objective To work in the welfare of the
citizens.
To provide better experience to the
customers and earn revenues.
Pay benchmark Relatively low if employee is at
lower level.
It could be high if the venture is
multinational company.
Example NHS, housing authorities, Armed
Forces, Bank of England etc
(Bramble, 2018).
Arnold Clark, Pentland Group,
Bestway Group, 2 Sisters Food Group,
EG Group etc.

Public and private entrepreneurship with the assistance of innovation, flexibility and
sustainability enhance its growth in the UK business as they are still fighting with the impact of
financial crisis and pandemic (Malesios and et.al., 2018). Due to contribution from government
providing various schemes for the upliftment of the businesses the ventures achieve a
competitive advantage in the market.
M4 Merits of entrepreneurship resulting in competitive advantage
Entrepreneurship provides competitive merit in the British as well as international
boundaries because of the sustainable and innovative approaches from the companies and were
ready to adapt changes according to the situation.
D3 Benefits entrepreneurship can bring to the company
The new ventures with an objective of high-growth would push the existing enterprises to
enhance the productivity and improve the performance to fight competition in the given market.
CONCLUSION
The article has been concluded by assessing the impact of SMEs on British and
considered it as the backbone of the economy. It was analysed with the help of relevant data and
statistics. The case study has been summarized by elaborating the similarities and differences
between the public and corporate entrepreneurship which resulted in the competitive advantage
to the company.

REFERENCES
Books and journals
Amuda, Y. J., 2020. impact of coronavirus on small and medium enterprises (smes): Towards
postcovid-19 economic recovery in Nigeria. Academy of Strategic Management
Journal, 19(6), pp.1-11.
Brown, R., Liñares-Zegarra, J. and Wilson, J. O., 2019. The (potential) impact of Brexit on UK
SMEs: regional evidence and public policy implications. Regional Studies, 53(5),
pp.761-770.
Cassetta, E. and et.al., 2020. The relationship between digital technologies and
internationalisation. Evidence from Italian SMEs. Industry and Innovation, 27(4),
pp.311-339.
Malesios, C. and et.al., 2018. The impact of SME sustainability practices and performance on
economic growth from a managerial perspective: Some modeling considerations and
empirical analysis results. Business Strategy and the Environment, 27(7), pp.960-972.
Martin, A. and et.al., 2020. Protecting the mental health of small-to-medium enterprise owners: a
randomized control trial evaluating a self-administered versus telephone supported
intervention. Journal of occupational and environmental medicine, 62(7), p.503.
Online references
Bodawala, P., 2017. SIMILARITIES BETWEEN PUBLIC AND PRIVATE SECTORS [Online].
Available through <https://www.govloop.com/community/blog/similarities-public-
private-sectors/>
Bramble, L., 2018. Difference Between Public & Private Enterprise [Online]. Available through
<https://bizfluent.com/info-8147819-advantages-disadvantages-capitalist-system.html>
Needle, F., 2021. The Eight Types of Entrepreneurship (& Companies That Exemplify Them)
[Online]. Available through <https://blog.hubspot.com/sales/types-of-entrepreneurship>
Taylor, D.P., 2022. 5 Types of Entrepreneurship: Which One Should You Pursue? [Online].
Available through <https://www.fool.com/the-ascent/small-business/articles/types-of-
entrepreneurship/>
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