Entrepreneurship & Small Business: Impact on the UK Economy Report

This report provides an overview of entrepreneurship and small business management, focusing on their impact on the UK economy. It examines different types of entrepreneurial ventures, including large-scale, small, scalable, and social businesses, and relates them to entrepreneurship typologies like lifestyle and growth ventures. The report highlights the differences and similarities between social, scalable, and large enterprises, emphasizing their contributions to employment and innovation. It details the impact of micro and small businesses on the UK economy, noting their significant contribution to national income and job creation. Furthermore, the report discusses the importance of startups and small businesses in fostering the growth of the social economy, defining its four pillars: mutuals, foundations, charities, and associations. The report concludes by underscoring the role of these ventures in driving economic growth, promoting technological advancements, and creating employment opportunities, supported by relevant references.

Unit 9 :
Entrepreneurship
and Small Business
Management

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1.Different types of entrepreneurial ventures in relation to typology of entrepreneurship..3
P2. Differences & similarities between entrepreneurial ventures..........................................4
P3. Impact of micro and small business on UK economy......................................................5
P4. Importance of small business and start up to growth of social economy.........................6
REFERENCES................................................................................................................................8

INTRODUCTION
Entrepreneurship can be referred to as the procedure of launching a new venture by
exercising innovation and creative thinking skills. Hereby, the primary role is that of an
entrepreneur who is responsible for running, management and control of activities associated
with new venture. The following project comprises of overview of different types of
entrepreneurial ventures along with relation with typologies. Further, the impact of micro and
small business over the economy of UK is given. Lastly , the significance of start ups and small
businesses on growth of social economy.
TASK 1
P1.Different types of entrepreneurial ventures in relation to typology of entrepreneurship
Entrepreneurship can be deciphered as the willingness and capabilities exercised by an
individual to create a venture that solves the issues faced by society as a whole. In this regard,
entrepreneur is a person who undertakes the risks and enjoys the rewards associated with
entrepreneurial venture. There are several types of entrepreneurial ventures which are briefly
explained as follows:-
Large scale business: This type of venture is based on larger capacity of the firm and
turnover in billion dollars. Such enterprises have a big organisational structure with an aim to
provide people with high quality and innovative products for their use. In terms of operation,
capability of large scale venture is quite extensive and also they have chain of stakeholder groups
such as investors, promoters, customer, shareholders, supplier etc. who provide aid to the entity
in sustaining in market for long run. For example: TESCO PLC is one of the most recognised
examples of large scale firms having a turnover of billions of pounds.
Small venture: This type of venture is small in size and is particularly new in market
place. Small firms sell products as per their actual capacity to ensure execution of business
operations in a cost effective manner. Being small in size and scope, such enterprises carry out
their operations by leveraging upon limited resources and incur funds as per their capacity. Here,
focus of small business is to expand operation to large scale slowly and steadily. Also, the
purpose held by these businesses is to creates employment opportunities for people and expand
the business in an optimal manner. For example: Sir John Baker is an example of small scale
firm.

Scalable venture: Such type of venture is operates at the growth scale, where expansion
of business operation is most supportive option to earn profitability and accomplish long term
objectives. Firm start operation with small base and they seen it as opportunity to grow for a big
operation. Category of the scalable ventures are manufacturing hub, operational logistics and the
distribution channel to expand it to a larger scale. For example: Unicorn grocery is a best option
for scalable venture, who is trading to sell groceries or other products.
Social business: This type of ventures are aim to do social welfare, development along
with social richness to the people. Intention of the social business is to do charity work, welfare
of the people along with running of any NGO along with running campaign such as food welfare
, blood donation camp, flood or other disaster relief events to helpful to help needy people. In
such type of venture, sense of contribution to the society be present. For example: Freedom soul
is an example of social business firm to do work.
Such entrepreneurial ventures work in coordination with the entrepreneurship typologies.
The different forms of typologies are briefly explained as follows:-
Entrepreneurship Typologies
The various types of entrepreneurship typologies are described as follows:-
Lifestyle ventures: These are the ventures which intend to satisfy the income status of the
individuals. Their main aim is not maximisation of profit but to enhance the living standards of
people by providing them with employment opportunities.
Growth ventures: These are the type of ventures which have their primary motive as
maximisation of revenue figures as well as profitability of firm. These firms capitalise upon new
ideas with a view to inflate the existing level of revenue and profits.
P2. Differences & similarities between entrepreneurial ventures.
The entrepreneurial ventures differ from each other on the basis of their scale, size and
staff count. Apart from this, there also exist certain similarities between all the ventures. Such
distinguishing features and similarities are briefly presented as follows:-
Differences between social, scalable and large enterprises
Differences Social Enterprise Scalable venture Large scale venture
1. The main aim of such
ventures is increment in
standard of living of
The main motive of these
types of ventures is to
maximise the market
The primary motive of
such ventures is the
increment of market

individuals belonging to
the society by providing
them employment.
share and increase the
revenues as well as
profits.
share by providing
customers with high
quality offerings.
2. The staff count within
this type of venture is
not constant.
The quantum of
employees in such type of
venture is restricted to 30.
Hereby, the number of
employees are over
250.
3. The basic ideology
behind social enterprises
is the introduction of
positive change within
society and creating
awareness among people
about it.
The main idea behind
setup of this venture is
launch of new
innovations at market
with a view to captivate a
large base of audience
and thereby enhance
market share.
Their main idea is to
make use of latest as
well as emerging
technologies with a
view to ensure long
term sustainability at
market place.
Similarities between social, scalable and large enterprises
 All three of them aim at providing high quality offerings to people to attain extensive
satisfaction from them.
 All of them generate employment opportunities for individuals, thereby boosting the
economy of a country.
 These ventures determine the market gap and then offer products which have the
capability to fill the gap.
P3. Impact of micro and small business on UK economy
Small businesses: These are the organisations having a staff of 50 individuals and an
overall turnover limited to £6.5million. The example of this can be a small local coffee shop
having 15 employees.
Micro businesses: These enterprises have the employee base of less than 10 persons. Ma
Baker is an excellent example of a micro organisation providing bakery products within London,
UK.
Contribution of micro business in UK economy

Micro business entities boost the economy of UK by creating employment for locales. s.
There were approximately 5.4 million micro entities within the confines of United Kingdom
within the year 2018, representing 96% of total businesses. These enterprises enhance the per
capita income of individuals belonging to this nation.
Contribution of small businesses in UK economy
Small business enterprises contribute significantly to the growth of UK. There were a
total of 0.2 million small businesses within the confines of concerned country in the year 2018.
These represent 99% of total businesses. They stipulate employment opportunities for local
people.
Illustration 1: Contribution of Small business in UK
It is interpreted that small entities constitute 99.3% of the overall contribution to national
economy of United Kingdom. Apart from this, small businesses create job opportunities
equivalent to 48% of residents of UK. This leads to growth and development of the economy of
concerned country.
P4. Importance of small business and start up to growth of social economy
Social economy can be defined as the accumulation of enterprises such as mutuals,
associations, foundations and charities which are regarded as its 4 pillars. Such pillars are
explained in a brief manner as follows:-

Mutuals: These are organisation which render security schemes to individuals like non-
life insurance schemes. Example: Employee Mutual Help Associations
Foundations: These can be regarded as legal entities which are developed for attainment
of specific goals related to welfare of a particular group or society as a whole. Example: The
Barka Foundation for Mutual Help
Charities: These are the entities which aim to address as well as resolve the issues faced
by society. They seek to empower the individuals belonging to an economy. Example: WWF
Associations: These are the entities which are formed by integration of personnel to
achieve a certain goal. Example: EKON Association for enhancing quality of lives of individuals
having disability.
Importance of start-ups on growth of social economy
Start-ups boost the economy of a nation by way of provision of employment opportunity
to individuals belonging to local areas. Also, it fosters enhanced utilisation of latest and emergent
technological trends to enable the growth and development of overall social economy.
Importance of small businesses on growth of social economy
Small business entities lead to growth of the economic conditions of a nation by coming
up with innovations as well as new technologies at rapid intervals of time. Such kind of
businesses create jobs for those who seek for employment and lack enough expertise to get a job
in large scale firms. These personnel are given training so as to enrich their personality with
effective professional skills and competencies.

REFERENCES
Books and Journals
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Drucker, P., 2014. Innovation and entrepreneurship. Routledge.
Kirzner, I. M., 2015. Competition and entrepreneurship. University of Chicago press.
Kuratko, D. F., 2016. Entrepreneurship: Theory, process, and practice. Cengage Learning.
Landström, H., Harirchi, G. and Åström, F., 2012. Entrepreneurship: Exploring the knowledge
base. Research Policy. 41(7). pp.1154-1181.
Read, S. and et.al., 2016. Effectual entrepreneurship. Routledge.
Santos, F. M., 2012. A positive theory of social entrepreneurship. Journal of business ethics.
111(3). pp.335-351.
Wright, M. and Stigliani, I., 2013. Entrepreneurship and growth. International Small Business
Journal, 31(1). pp.3-22.
Cumming, D. J. and Zahra, S. A., 2016. International business and entrepreneurship implications
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Fayolle, A., Verzat, C. and Wapshott, R., 2016. In quest of legitimacy: The theoretical and
methodological foundations of entrepreneurship education research. International Small
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Galloway, L., Kapasi, I. and Sang, K., 2015. Entrepreneurship, leadership, and the value of
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53(3). pp.683-692.