The Importance of Small Business and Startups in Social Economy Growth

This essay discusses the role of entrepreneurship and the impact of micro and small business enterprises on the economy, particularly in the UK. It highlights the direct and indirect contributions of SMEs to economic growth, including job creation and support for the national economy. The essay also emphasizes the importance of small businesses and startups in fostering growth within the social economy, addressing local needs, and contributing to job creation. Furthermore, it differentiates between small, medium, and large businesses, outlining their respective impacts at regional, national, and international levels, supported by relevant references.

Entrepreneurship

Introduction
Entrepreneur is a person who is a ultimate strategist at
all the levels whether it is corporate, business as well
as functional. Entrepreneur use their appropriate
skills along with the knowledge to do creativity and
innovation in their existing products which assist in
improving sales and generating more profit.

P3 Impact of the micro and small business enterprises on the economy
Small scale business helps and also provide proper
support in the developed business. So, it is important
for UK that they have to start so many small scale
businesses which helps in improving the economy.
There are different type of business enterprise such as:
Sole proprietorship
Partnership
Private enterprise

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These type of businesses having a impact whether it is
direct or indirect. Moreover, these business does not
having a high turnover so that they can make a
contribution in the growth of the economy. In the
competitive market, different type of business
organisation are there whether it is micro business,
small business and medium enterprise.

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The small and micro enterprises(SMEs) made a great
record of 5.5 million private enterprises at the time of
starting of the year 2016. There are 1.3 million people
who are employing in the businesses as well as 4.2
million people who are non employing the businesses
which are to be recorded in the year 2016. In the
business population of UK increased to +59% up to
2000 and +2% since 2015 with a sustainable growth.

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Along with this they are having a direct as well as
indirect impact. Direct impact is that these business
having a direct impact and provide proper support
which helps in expanding the growth of the economy.
These organisation run and owned by private
entrepreneur and it helps in reducing the rate of
unemployment. The youth of UK attracts new job
which helps in increasing the employment. These
business having some indirect impact as these
organisation provides the opportunities to those person
who are unemployed and by that they can make a
contribution in expanding the growth in the economy.

P4 Importance of the small business and business start up to grow in social economy
A social economy is a third sector among the
economies whether it is private and public sector. It
includes the organisation such as cooperatives, non-
profit organisation, social enterprises as well as
charities. Small business are essential as well as
important in the success along with the expansion of
economy. These businesses helps in meeting the local
needs.

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Small business are helpful for UK because it helps in
measuring the economic contribution. Along with this
it helps in providing employment to youth and some
sole traders are working independently as they make
the large contribution in job creation in UK. When it
comes to business growth, small business enterprise
make proper contribution.

M2
Small as well as medium-sized enterprises are the non-
subsidiary along with the independent firms which
employ fewer than a given number of employees. Small
scale business is a business that employ a small number
of workers and does not have a high volume of sales.
These enterprises are generally privately owned.
Medium business is that business in which employees
are fewer than the 250 person and having a annual
turnover not exceeding 50 million euro. Large business
is that business which is having a more than 250
employees. It helps in arising the multinational
business.

D2
Some impact of small business on the different levels
of the economy:
Different levels Description
Regional level It helps in rotating the money in the local
market of a specific region. Along with this
they have to use some skills which helps
in increasing their earnings.
National level Small business provide support in the
national economy so that they can do their
better production which helps in
increasing the gross domestic product rate
which can make exports.
International level Small business have to improve their
production which helps in increasing the
market condition support to the world
economy with the international trade.

References
Carraher, S.M and Paridon, T.J., 2015. Entrepreneurship journal rankings across
the discipline. Journal of Small Business Strategy. 19(2). pp.89-98.
Glaeser, E.L., Kerr, S.P and Kerr, W.R., 2015. Entrepreneurship and urban
growth: An empirical assessment with historical mines. Review of
Economics and Statistics. 97(2). pp.498-520.
Fayolle, A and Gailly, B., 2015. The impact of entrepreneurship education on
entrepreneurial attitudes and intention: Hysteresis and persistence. Journal
of Small Business Management. 53(1). pp.75-93.