Opportunities for Small Businesses Post-Brexit: A UK Analysis

This report, prepared for an HND Business course, examines various aspects of entrepreneurship and small business management, particularly in the context of the UK. It begins with an executive summary and a table of contents outlining the report's structure. The introduction defines entrepreneurship and its role in the economy. The report is divided into four tasks addressing different learning outcomes. Task 1 explores different types of entrepreneurial ventures, including scalable, small business, large company, and social enterprises, comparing their similarities and differences. Task 2 assesses the economic influence of micro and small businesses, considering the impact of Brexit. Task 3 differentiates between entrepreneur characteristics and business managers, focusing on personality, mindset, and motivation. Task 4 examines the influence of background and experience on entrepreneurship. The report concludes with a summary of findings and a reference list.

ENTREPREERUSHIP
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Executive Summary
In order to maintain effective objectives and effective business, a prerequisite entrepreneur plays
an important role in an enormous company or business. In addition to that, in order to gain
fruitful visionaries and end goals, the entrepreneurs need to be effective in terms of business
decisions and planning of strategies.
On the other hand, in order to develop the business growth and maintenance of business issues,
proper administrative capabilities need to be appropriate. In terms of business, different business
possesses different numbers of employees and thus helps to categories the business in different
types. As businesses helps to balance the economic development through contributing the shares
in enhancing gross domestic products, thus the government needs to concentrate on the small
scaled businesses in order to develop the focal point on the small scale and thus top gain
economically developed. On the other hand, in order to gain successful business, proper
motivation and mindset of entrepreneur needs to be appropriate.
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Table of Contents
Introduction......................................................................................................................................4
Task 1...............................................................................................................................................4
LO1..................................................................................................................................................4
P1. Different types of entrepreneurial ventures...........................................................................4
P2. Entrepreneurial ventures similarities and dissimilarities.......................................................5
Task 2...............................................................................................................................................7
LO2..................................................................................................................................................7
P3. Economic influence through micro and small business.........................................................7
P4. Social economy growth through small business and business start-ups..............................11
Task 3.............................................................................................................................................12
LO3................................................................................................................................................12
P5. Difference between entrepreneur characteristics and business managers...........................12
P6. Personality mindset and motivation aspects of entrepreneurs.............................................13
Task 4.............................................................................................................................................15
LO4................................................................................................................................................15
P7. Background and experience influence on entrepreneurship...................................................15
Conclusion.....................................................................................................................................16
Reference list.................................................................................................................................17
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Introduction
Entrepreneurship is considered as the individual willing to make profit through approaching the
business, with taking potential risks of failure. In addition to that, entrepreneurship is also
referred as the innovative business of individuals which are connected by an individual in the
economic system.
This discourse highlights different ventures of entrepreneurs with reference to their similarities
and differences. In addition to that, this course study demonstrates the influence of business on
economy and focuses on the economic growth through the small business enterprises. On the
other hand, this critique differentiates between the roles of managers and entrepreneurs, in
relation to business. Moreover, this discourse highlights the influence of entrepreneurs, with
reference to their personality and experience.
Task 1
LO1
P1. Different types of entrepreneurial ventures
Entrepreneurs started their own business in order to gain a profit with considering the risks of
business. In the view of Chaston (2017, p.16), entrepreneurs gain an advantage of having proper
establishment of start-up business through approaching the entrepreneurial business. Different
entrepreneurs have succeeded in managing a successful business at a global level such as, John
Cadbury of Cadbury Company, M&S of Michael Mark and Thomas Spencers, Jeff Bezos of
Amazon and many others. In the opinion of Barreto (2013, p.56), small business enterprises are
considered as the economic backbone of United Kingdom. In terms of business, the choice of
Brexit of UK might influence the economic capability of UK based on long-term future, with
spending the expenses and taxes on infrastructure development rather than paying to EU.
Figure 1: Company Size in UK
(Source: Research Open Data means Business, 2017)
Based on the business, the entrepreneurs are engaged in different ventures, such as:
Scalable
Scalable entrepreneurship is considered as the business, which is done on the famed and existing
products and services, in order to establish a large business based on long-term. Yavli and
Farfetch can be some examples of UK, which can be considered as the scalable business. In the
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opinion of Bruton et al. (2015, p.20), in order to gain funds and investment expenses, the
scalable entrepreneurs seek to financial investors, in order to establish their business in a long
terms sight.
Small business
Small business entrepreneurship is considered as the local business or doing business at a local
area, in order to make a profit from the business. In the view of Autio et al. (2014, p.1102), small
business entrepreneurship aims to provide the services and products, in order to gain customer
satisfaction and high profit through distributing the products and services at local area. The
examples of small business entrepreneurship can be considered as the local shopkeepers in
streets. In addition to that, the investments and funds, in order to establish the small business are
gained from the local people, clubs, relatives or friends.
Large company
Large company entrepreneurship are considered as the establishment of business with a aim typo
service the customers at a larger population at global level through using different channels and
mediums of business. In the opinion of Amit et al. (2015, p.296), the larger company
entrepreneurship aims to gain a high amount of revenue generation and high profit. Some
examples of larger company entrepreneurship can be Amazon, Tesco Plc, Cadbury and others in
UK.
Social
Apart from the above business ventures, social business entrepreneurship is generally considered
as the non-profit organisation, which aims to deliver the services to the customers in order to
help them with social factors. As DeTienne (2015, p.269) has commented that, social business
entrepreneurships can engage the social topology entrepreneurs. Examples of such social
entrepreneurship companies are Key Funds, CASA, Settle Hydro and others.
P2. Entrepreneurial ventures similarities and dissimilarities
Based on the entrepreneurship ventures, all of the ventures possess both dissimilarities and
similarities in the procedure and process of business.
Large business entrepreneurship & Small
business entrepreneurship
Differences ● The large business entrepreneurships
have specific structure and market
segmentation. However, as Ridley
Bull (2015, p.28) has stated that, small
business entrepreneurship do not
possess at specific departments in
order to serve the customers.
● The customer target of large business
enterprise is extended from the local
customers to global customers of
different places and geographical
areas. However, the small business
entrepreneurship has their target
customers limited to the people and
individuals of residential and local
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area.
● The small business entrepreneurship
do not needs much skilled and
specified employees. However, a large
business entrepreneurship recruits
employees with high skilled
individuals and through a proper
hiring process.
Similarities ● Both the large entrepreneurship and
small entrepreneurship aims to gain
profit and revenue through the
business.
● Customer satisfaction is the similar
aspect which is considered by both of
the entrepreneurship ventures.
● According to Kitching (2015, p.140),
the products and services of both the
large entrepreneurship and small
entrepreneurship are customer centric.
Serial entrepreneurs & Social
entrepreneurs
Dissimilarities ● The lifestyle entrepreneurs follow a
particular model of business in order
to avoid and minimize the potential of
risks in their business. However, on
the other hand, as Fayolle (2017, p.62)
has stated that, serial entrepreneurs
takes risk in their business through
approaching new and innovative ideas
in their business.
● The chances of taking risks in
approaching the business strategy and
model are high in the serial
entrepreneurship rather than the social
entrepreneurship.
● The serial entrepreneurs approach
different business models and ideas in
their business, In order to experience
the services and products and
customer choice. On the other hand, in
the view of Schaper (2016, p.47),
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lifestyle entrepreneurs approaches the
single and existing model of business.
Similarities ● Both the serial entrepreneurs and
lifestyle entrepreneurs applies the
business model and innovative ideas
based on the choice and preferences of
customers.
● As Ojala (2015, p.831) has stated that,
in order to gain innovative and
business flow with the trend, both the
entrepreneurs implements, new ideas
and innovations, in terms of products
and services.
● The products and services of the serial
entrepreneurs and lifestyle
entrepreneurs are customer centric and
are produced based on the feedback
and preferences of customers.
Task 2
LO2
P3. Economic influence through micro and small business
As there are different types of business and entrepreneurships, thus, different business types
possess different business size and other features. In the view of Kitching et al. (2015, p.134),
based on different features of business, it is considered in three main categories of small,
medium and large business enterprises. All the business has different numbers of employees,
which helps to categorize the business in small, medium and large business. In the opinion of
Bagwell (2015, p.341), a medium business consists less than 250 employees with 50m turnover,
small businesses consist > 50 employees with 10m turnover.
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Figure 2: Business contribution in UK economy
(Source: Source: gov.uk, 2016)
Further, the business is widely distributed in the following three categories, based on the UK
standard:
Sole Proprietorship
In order to gain high revenue and profit, a single owner of the business runs the business.
However, on the other hand, as Storey (2016, p.59) has commented that, the proprietor might
hire other individuals in order to establish and run the business in a successful manner.
Private
The numbers of employees and staffs of the private business owners limit from the owner of
business to the concerned investors.
Partnership business
Two or more than two individuals run a business of partnership, with having different shares and
thus, gain a high amount of profit and revenue, with delivering the products and services to the
customers.
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Figure 3: UK SME employment, share and turnover
(Source: BARCLAYS, 2016)
As small business is considered as the backbone of United Kingdom’s economy, thus the choice
of Brexit might influence the economical factors of UK. In the view of Wilson et al. (2014, p.6),
Brexit might influence the EU immigration policy in terms of UK, which might influence the
immigration of low skilled labors of European Union to enter in UK territory, in relation to the
job sector. Thus, as the maximum of economic development is based on the small scale business,
it might hinder the availability of low skilled and waged laborers in the small businesses.
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Figure 4: After effect of Brexit on GDP growth
(Source: Business Insider, 2016)
In addition to that, as Zacca et al. (2015, p.19), has commented that, implication of Brexit policy
in United Kingdom can help them to gain overall single market, where the UK can develop their
business at global level and with the non- EU countries. However, in order to do so, UK needs to
have proper skilled labors and employees. On the other hand, according to Epifanova et al.
(2015, p.140), United Kingdom needs not to give the expenses of tax and tariffs to EU in order to
do market, which can be spend to develop the economic condition and business growth of UK.
Brexit policy implementation in UK on the other hand can help their local and small business to
boost up, with gaining of competitive advantage and lower cost of import.
Figure 5: Estimated Impact of Brexit on UK GDP
(Source: Woodford, 2016)
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In the view of Goss (2015, p.19), application of lower import cost can help to gain real incomes
to the small business of UK and thus to gain high profit and revenue, which ultimately can help
to enhance the economical development.
P4. Social economy growth through small business and business start-ups
In order to minimize the risk of business failure, an entrepreneur needs to have proper orientation
of market and customers. According to DeTienne et al. (2015, p.264), as the small business
contribute to the economy of United Kingdom, thus, Brexit policy might influence the
economical development of UK indifferent manner.
Figure 6: EU tariffs on different sectors
(Source: Woodford, 2016)
As with the exit of Britain from EU will help to save the external tax and tariffs, which have to
pay to the EU, in order to free trade, thus, it might increase the tax and tariffs in the United
Kingdom territory. As Grant (2016, p.94) has commented that, increase in the service taxes and
tariffs in United Kingdom will ultimately increase the public expenditures and thus might
influence the real incomes of the enterprises and small business entrepreneurs.
On the other hand, the restriction on the trade will also be imposed if the Brexit policy will be
effective in United Kingdom, which will restrict the entrepreneurs to do trade in the European
Union countries and thus might influence the employee immigration. However, as Wilson et al.
(2014, p.4) has commented that, Brexit might influence the UK economy in the early stages;
however, it will enhance the economic development of United Kingdom at long-terms basis.
Startup and small business difference
Start-Up Business Small Business
● Start-up Business is considered as the
new launched business by the
entrepreneurs.
● In the view of Grimes et al. (2013,
p.462), start-up business develops
growth on a slow basis.
● Small businesses are considered as the
low output business however old
ventures are.
● The economic development of small
business is generally stable.
● The small business aims to meet the
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● Start-up business might approach the
customers of local areas ort as well as
customers from other different
regions.
● Start-up business might implement
online appearances.
● Start-up business is scalable.
customer demands of local people and
up to a limited area.
● Small business generally might have
online appearances or might not have.
● Small business is not generally
scalable.
Significance of small scaled business
In the opinion of Amit et al. (2015, p.300), small scaled business helps to provide an opportunity
of employment to the individuals, which helps to gain economic development in the per capita
income and thus ultimately helps to gain economical development of United Kingdom. On the
other hand, small and start-up business, both helps to gain development in the rural area, with
recruiting the individuals as employees in the business.
In addition to that, as Autio et al. (2014, p.1109) has stated that, approach of small scaled
business helps to payments and development in expert systems. As small scale industries can
help to provide export services of products and services at high rate, thus, it can help to enhance
the BOP balance of United Kingdom. Thus, small scaled business helps to gain overall
development of United Kingdom, with enhancing the economy of individuals and different areas.
Task 3
LO3
P5. Difference between entrepreneur characteristics and business managers
Despite of similar kind of roles and responsibilities of business manager and entrepreneurs, both
the job roles possess dissimilarity in different contexts. In the opinion of Barreto (2013, p.28),
the major difference which is seen in between the job roles and responsibilities of an
entrepreneur and a business manager is the proprietorship. In terms of proprietorship, the
business managers are recruited by the owners of business, in order to manage the overall
business key areas. However, on the other hand, entrepreneurs are the key person, who owns a
particular business and thus runs the business in order to gain profit.
Factors Entrepreneurs Managers
Motivational source Entrepreneurs are generally
motivated by seeing the
success of other business in
different venture of business.
Managers on the other hand
are motivated through
enhancing and accumulating
power in the business
organisation.
Job Focus Entrepreneurs focus on the
implementation of new
innovation and idea in the
business organisation.
Job focus of managers is
centralized on the
management of overall
management of business
operations.
Status Entrepreneurs are considered
as the owners of the business
Business managers are
considered as the employees
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a thus can consider changes
and decision without
consulting other employees.
of organisation or business,
which is owned by a
entrepreneur. In the opinion
of Chaston (2017, p.67), the
decisions proposed by the
managers are consulted with
the entrepreneurs.
Rewards and appreciation Entrepreneurs, in terms of
rewards expect high sales and
revenue generation through
the business, which can help
to gain profit at large amount.
In terms of business managers
the expectation as reward is
appreciation from the senior
authorities and increment of
salary and designation.
Decision making The decisions of
entrepreneurs are taken from
institution in order to expect
the effectiveness of the
decisions.
The decision making in case
of the business managers are
calculative and are consulted
and cooperated with engaging
different key persons,
including entrepreneur of the
business.
Risk Orientation Entrepreneurs, in terms of
risk orientation, takes risks
with implementing new and
innovative ideas in the
business decisions, which
might influence the business
growth.
Business managers, in context
of the risk orientation take
business decisions in a
calculative manner, in order
to avoid and minimize the
potential risks of the
organisation.
P6. Personality mindset and motivation aspects of entrepreneurs
In terms of motivation of the entrepreneurs, different factors and aspects might influence the
motivational factors of entrepreneurs. On the other hand, Bagwell (2015, p.332) has commented
that, personality of entrepreneurs are the major factors which helps the entrepreneurs to motivate.
In order to gain positive motivation, entrepreneurs might approach the model of Big five
dimensions. In the view of Schaper (2016, p.85), approach of proper motivation personality in
the entrepreneurship can help the entrepreneurs to gain effective achievements in the business
projects and business objectives.
The big five dimensions, which can help to gain business efficiency are:
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Figure 6: Big Five Dimensions
(Source: Created by learner)
Openness
Openness mindset of the entrepreneurs can help them to gain efficiency and effectiveness in the
business projects and areas, with gaining of proper novelty, interest level and imagination power.
In the opinion of Goss (2016, p.24), openness traits of entrepreneurs can help them to put
effectiveness in their business with proper creation of vision, reflection and creativeness, in a
critical manner.
Agreeableness
Agreeableness traits, consider the nature and mindset of helpfulness and cooperative and
collaborative behavior of the entrepreneurs. However, on the other hand, in terms of the
agreeableness, the entrepreneurs should not agree in all the decisions of employees. On the other
hand, as Wilson et al. (2014, p.7) has commented that, agreeableness can help to solve the
problems of organisation and thus minimizes the chances of gauge.
Extraversion
Extraversion trait of the entrepreneurs can help them to socialise thus communicate with the
other individuals in both external and internal environment of the organisation. In the opinion of
Bruton et al. (2015, p.12), extraversion trait and mindset of the entrepreneurs can help them to
communicate with the employees of the organisation and thus to gain effective relationships and
trust building.
Conscientiousness
Conscientiousness traits of an entrepreneur can help them to be concerned about their
organisational goals and objectives. In the opinion of DeTienne et al. (2015, p.261), such traits of
conscientiousness helps the entrepreneurs to gain effectiveness in the business works and
procedures with reference to gain of successful business and punctuality.
Neuroticism
Neuroticism traits in a entrepreneur is considered as the traits and psychological behavior, such
as nervousness, vulnerability, anxiety and other such tensions. As Barreto (2013, p.87) has
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NeuroticismConscientiousnessExtraversionAgreeablenessOpenness

commented that, the entrepreneurs needs to have less neuroticism mindset and traits, in order to
gain effective power and business progress. More neuroticism traits might suppress the
entrepreneurs, by their employees in terms of decision making and other business functions.
Task 4
LO4
P7. Background and experience influence on entrepreneurship
As Chaston (2017, p.13) has commented that, the past experiences of an individual can help
them to shape the future through in terms of business, through resolving the issue in order to
minimise such risks in future. Thus, past experiences of an entrepreneur can help them to
understand the situations in a better manner and thus can help them to implement proper business
decisions, by analysing the past experiences.
In terms of entrepreneurs, several cases have evidenced to gain success through the past
experiences at a global level. He case of Amazon in the past year of 2013 have been alleged for
the worse working condition of the employees at the warehouse. However, with such past
experiences, the entrepreneur of Amazon helped to develop proper strategy and development in
the working conditions of Amazon and now has positive brand image and strong revenue
generation.
Figure 7: Customer Satisfaction level of Amazon
(Source: Amazon Corporate Information, 2017)
Such experience of Amazon with negative reviews helped the entrepreneur of Amazon to
understand the situation, which have damaged their brand reputation and thus slowed down their
growth.
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Figure 8: Amazon Corporate Information
(Source: Created by Learner)
However, with understanding the situation and analysing the experience, the entrepreneur
approached proper innovative ideas and thus helped Amazon to gain high revenue and growth in
the marketplace with gaining strong and positive brand image.
Conclusion
As different business has different numbers of employees, thus it is categorized in different
business categories, based on the numbers of employees. The entrepreneurs needs to understand
the market in a proper manner in order to gain the customer needs and demands, which can help
them to implement proper strategies and solutions.
On the other hand, as small business helps to develop the economical condition of a nation, thus,
implementation of Brexit needs to be developed with considering all the factors, as Brexit can
influence the small scaled business in a negative manner. On the other hand, in order to establish
and run a successful business, the entrepreneurs needs to have proper skills and strong mindset,
in relation to the traits of entrepreneurs. In addition to that, as application of Brexit in United
Kingdom will influence the immigration policy of EU, thus, the entrepreneurs needs to have
proper trait dimensions, which can help to develop the business and thus top the economic
backbone of UK.
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