Exploring the Impact of Micro and Small Businesses on the UK Economy

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ENTREPRENEURSHIP AND SMALL
BUSINESS MANAGEMENT

Table of Contents
INTRODUCTION......................................................................................................................................................... 3
TASK 1............................................................................................................................................................................ 4
P1 TYPES OF ENTREPRENEUR VENTURE AND THEIR TYPOLOGY...............................................4
P2 SIMILARITIES AND DIFFERENCES OF DIFFERENT NATURES OF VENTURES..................7
TASK 2............................................................................................................................................................................ 9
P3 INTERPRET AND ASSESS RELEVANT DATA AND STATISTICS TO ILLUSTRATE HOW
MICRO AND SMALL BUSINESSES IMPACT ON THE ECONOMY.......................................................9
P4: EXPLAIN THE IMPORTANCE OF SMALL BUSINESSES AND BUSINESS START-UPS TO
THE GROWTH OF THE SOCIAL ECONOMY.............................................................................................11
TASK 3.......................................................................................................................................................................... 12
CONCLUSION............................................................................................................................................................. 23
REFERENCES............................................................................................................................................................ 24

INTRODUCTION
Entrepreneurship is the process of generating the idea for a business, work on that idea,
designing, establish and running a new business or businesses. Generally, in
entrepreneurship, small businesses (sole proprietorship) are launched as they require less
capital to open a business. The person who generates the idea and takes the initiative is
called Entrepreneur (Abe et al., 2015).
Entrepreneurship is explained as the capacity to take the risk and make decisions
regarding the business organization to develop or expand in order to generate profit from
it. As launching a business organization has a high-risk factor, many entrepreneurial
ventures ended up becoming failures (Artinger and Powell, 2016). It requires great skill,
knowledge and understands for running the business successfully. The exploitation of
Entrepreneurship opportunities may consist of generating a business plan, appointing
human resources for work, management of financial and material resources, Leadership
and the responsibility for success or failure of business ventures and Risk-taking.
This assignment shows the importance of a successful entrepreneur and entrepreneurship
for a business organization for running long term success. The report shows the business
activities within London borough as it has 32 local district authorities under it which
provides support to the people to start new entrepreneurship (Audretsch et al., 2016). The
objective of this report is to analyze the business activities within the borough and
encourage the existing business organization to continue their business. This report also
shows the process and hurdles which can be faced by an entrepreneur to start up a new
business organization.

TASK 1
Entrepreneurship is the activity which alludes to the organizing capability and developing
a business venture through various business factors such as risk-taking, business
management in order to earn the profit. In simple words, the idea of opening a new
business venture is called entrepreneurship (Banerjee et al., 2017).
An entrepreneur is an individual who comes up with the idea and does all the activities
for the business enterprise. An entrepreneur takes the initiative and starts the new
business ventures with the risk factor and other business activities.
An intrapreneur is a person who works in the business organization as a worker. An
entrepreneur can be the manager of a business organization but an intrapreneur can’t be
the owner of the business organization as he is paid to work in the business organization.
P1 TYPES OF ENTREPRENEUR VENTURE AND THEIR TYPOLOGY
There are as many types of entrepreneur venture as many an entrepreneur. Choosing the
right entrepreneur venture type is very important for business activity as it can be a major
factor of success and devastation (Burns, 2016). The right business venture is capable of
generating more revenue and make a significant impact on the growth of the business
organization. The different nature of business ventures are as follows:
Independent Ventures
It is a type of business ventures in which an individual takes the initiative to launch the
business enterprise. The risk factor, decision making, planning activity and other business
activity is solely the responsibility of the individual (Cowling et al., 2015). This venture is
also called sole proprietorship as in this venture single person is the boss of the business
organization.
Lifestyle Ventures
Lifestyle ventures aim to bring change in the market by altering the trend in the market
and provide a better living and lifestyle for the peoples (Dimitratos et al., 2014). London

boroughs give special attention to this type of venture as it brings innovation in London
boroughs. This type of venture can compete with the other organization also as they
innovate in their services which generates enough profit to make it successful.
Small Business Entrepreneurship
These business enterprises are generally very small in size and operate by very few
peoples. The number of employees in this business is 0-10 and the maximum investment is
up to 110000 Euro. The nature of this business is generally grocery stores, electrician,
consultant, travel agent, plumber and other similar business activity (Eijdenberg et al.,
2015). It is the main type of business in London boroughs so the council of London
boroughs encourages entrepreneurs for new startups.
Corporate venture
The size of this venture is quite big as their main objective is profit maximization corporate
venture reach the customer of new market and grows as a business industry. The
competition is moderate in these ventures and competes in the market by innovation in
their process (Fernández-Mesa and Alegre, 2015). The councils of London borough provide
supports very much to these organization as they require a large amount of capital for the
establishment.
Growth Ventures
The growth ventures are often big in size and aim to develop and expand their business in
the coming years. The strategy of these firms is growing as a unit in the next 5-10 years.
They build their foundation pretty well as they invest their capital as such as they earn
enough profit to focus and maintain their business activity (Fernández-Mesa and Alegre,
2015).
Innovative Ventures
The motto of these objectives is not just to earn profit but to introduce innovation in the
market and amongst people. The entrepreneur and intrapreneur of these business

organizations are quite innovative in their work which helps the business organization to
focus on change without having much trouble (Giaoutzi et al., 2016).
The council of the London borough also conducts various types of innovative programs
which helps the entrepreneur to understand the scope, challenges of innovative ventures
and helps to overcome these hurdles (Giaoutzi et al., 2016).

P2 SIMILARITIES AND DIFFERENCES OF DIFFERENT NATURES OF VENTURES.
Basis Public Enterprises Private
Enterprises
Social Enterprises
Roles The roles and
responsibilities of
these organization
it to provide
services and
products at
affordable price
(Goffee and Scase,
2015). Government
regulates the public
enterprises but
private company
can invest too but
partly.
Private business
ventures make their
own rules and
regulations and
make decisions
solely according to
situation of
business enterprise.
The main aim of
private organization
is to generate more
profit and
maximizing it.
The social
enterprise is
something which
represent the works
with the betterment
in the society. This
can help in
generating support
to the economic
development of the
company as well
subjective councils
in the government
characteristics The key objectives
to the business can
present the body
which is helpful in
the supporting a
start-up business
with the observed
public enterprises
measures with the
growth and
economic
conditions of the
country.
The private
business can focus
on the profit based
workability through
which the work can
be managed (Goffee
and Scase, 2015).
This can associate
with the system that
can be managed to
meet with the
subjective goals.
The social
enterprise can meet
with the non-profit
ratio which can
realise in
accordance to the
subjective goals
(Kozubíková et al.,
2015).

Exploring the size of the London borough council with respect to the ventures
The public enterprises can meet with the government bodies which help in regulating the
presence of the organization with the powerful benefit to the business. This can project on
the service which are dwelling on the allowance of benefit and profit ratio to the business.
The most effective segment to the work can be portrayed for the private organizations
(Kozubíková et al., 2015). This can access on the services to the customer with the range to
attain the profitable business.
The social enterprises directs on the London council borough which is way too different
from the private and public sector organization as this offers the social values and
promoting the health and safety for the people working within an organization (Mason and
Brown, 2014). This can be efficiently meet with the competitive market conditions and
gaining access to the success factor along with popularity in the market.

TASK 2
P3 INTERPRET AND ASSESS RELEVANT DATA AND STATISTICS TO
ILLUSTRATE HOW MICRO AND SMALL BUSINESSES IMPACT ON THE ECONOMY.
There are different records for each of the private and public sectors. However, the start-
ups for the business at the UK have turned out to be 5.7 million in 2017. This has raised the
level to around 1, 97,000 since 2016 with more than 2.2 million than that in 2000 (Mason
and Brown, 2014). Thus, the range of the employing business has been raised by 3%. This
can meet with the business structure of the small business that are accounting for the
economy of the business. This has emerge on 99.3% of the all private sector business
through which the startup of 2017 can be directed on the total employment of 16.1 million
(Banerjee et al., 2017).
In 2017, the private sector has presumed the employment ratio to 60% of all private
sectors and aiding on the turnover rate of the UK small business.
Figure 1: Contribution of different sized business

Source: Banerjee et al., 2017
The composition of the business population is approaching to the 1.3 million of business
employees and 4.3 million non-employees for the business with either side of the owner’s
ratio (Banerjee et al., 2017). This approach to the overall business structure and population
with the three legal entities has helped in meeting the subjective change. This can comprise
over the legal forms and sole proprietorships and ordinary partnerships with the VAT or
PAYE registered ratio to 45% (Banerjee et al., 2017).
At the London Borough council the dynamics of SMEs are subjectively underpinning the
productivity and enhancement for inclusive growth of the business in a profitable ratio.
This can be termed as the employees, turnover rates and market share (Reijonen et al.,
2016). The competitiveness of the national and sub-national economies can considerably
meet with the employment creation to be reason for the major increase in the demand and
strengthen a competitive position. This can seize on the new opportunities in the market.
The distribution of the business growth exhibits with the large similarities and
experiencing the modest or zero growth to the business (Rostamkalaei and Freel, 2016).
Evidence to the subjective matter affirms the high growth rate over the short period of time
can typically represent the small share of the total business. This can trade off the business
with the rapid development in the business with the employment growth.

P4: EXPLAIN THE IMPORTANCE OF SMALL BUSINESSES AND BUSINESS START-
UPS TO THE GROWTH OF THE SOCIAL ECONOMY
Social economy is the formation of the rich and diverse range of the cooperative and
mutual, associations through which social objective over capital can be attain. The social
economy for the small business and business start-ups can project on the London Borough
council (Nason et al., 2015). The economies of the start-up business do not last more than
five years are subjectively recorded with much higher non-employing burdens for the
business. This can attain the approximate ratio of 1.3 million in the year 2017 (Stubbs,
2017). The products and services that are offered by the London borough council can
subjectively add to the economy of the Britain and UK. Thus, the exit from EU has
introduced with the market position for the council (Wolz et al., 2016).
The small businesses are prudent and do not have big organizational structure but their
growth opportunities are variable with the subjective nature. Thus, the opportunities that
are being seek with the growth and economic areas can present the portable range of
factors that help in meeting the consumer choices (Glass, 2015). According to OCED (2018),
the High growth firms tend to be more innovative than the small scale peripherals. Thus, it
has been sprout out that the small business can have significant impact on the net job
creation and social inclusion with the subjective choices with the largest share in the
business within the range of the services (Sailor, 2015).
The government of the UK has projected on the Brexit laws in order to provide the London
borough with the SME. This can mark with the fifth of all the present areas. Thus, it can be
operating in the social sector (Rostamkalaei and Freel, 2016). Henceforth, it is marking to
the importance with the utility for the participation of the SMEs in the business. The large
business can therefore surrounds with the 0.2 percent of the total business population
(Karadag, 2015).
The majority of the population growth since 2000 has direct on the overall increase to
89%. This can be accounted with the range of the sole proprietorships and increasing the
number of the ordinary partnerships to around +7% and also fell to -2%. SME has
accounted on atleast 99.5% of the business in every sector (Goffee and Scase, 2015).

TASK 3
Slide 1
Slide 2