Entrepreneurship: SME Impact on UK and European Economies

This report provides an in-depth analysis of the impact of Small and Medium Enterprises (SMEs) on the UK and European economies. It begins with a definition of SMEs and evaluates their growth and financial contributions to the UK economy, referencing data from 2019 and discussing factors influencing their development. The report then examines the role of SMEs in the national economy, contrasting their impact across different UK regions (London and East of England) and industries (construction, retail). Furthermore, it compares the effects of SMEs in two EU countries, highlighting their importance for economic growth, job creation, and social integration. The conclusion emphasizes the significant contribution of SMEs to national economic development, job opportunities, and improved living standards, supported by relevant references.

Entrepreneur Small
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Table of contents
 Introduction
 Concept of SME
 Contribution of micro, small and medium private organisations to
the UK Economy
 Impact of SME’s for two UK regions
 Impact of SME’s for the UK utilising two different industries
 Impact of SME’s for two EU countries
 Conclusion
 References

Introduction
Small and medium enterprises are the organisations which employs up to 250
employees. The contribution of small and medium organisations in the
economy of nation is significant. This report covers concept of SME's along
with evaluation of growth and financial contribution of micro small and
medium private companies to the economy of United Kingdom. Apart from
this, it also compares the impact of small and medium enterprises for two
regions of United Kingdom, two regions of European Union and two different
industries of United Kingdom.

Concept of SME
Small and medium enterprises are referred as the organizations with up to 250
workers and are highly contributed to the economy of the world. The turnover
of small and medium organizations is less than 50 million pounds. These
organizations make up around 99.9% of businesses in the United Kingdom
which highly contributes in growth and development of the economy of
country. Millions of people are work in small and medium organizations who
are the key driver for growth and sustainability of economy.

Contribution of micro, small and medium private
organisations to the UK Economy
In year 2019, there were around 5.9 million businesses in United Kingdom
which are small and medium-sized. For the economy of United Kingdom, small
and medium-sized enterprises are crucial and their contribution is maximizing
every year. In year 2019, over 2 lakh new businesses as well as private sector
organizations increases of 3.5 percent from previous year. Since year 2000, the
number of businesses increased in United Kingdom, except a small decline of
0.5 percent between year 2017 and 2018 with +3 % average growth rate.

Impact of SME’s for two UK regions
In London, the ratio of small and medium enterprises is highest which is
calculated through comparing number of organisations per 10000 adult
residents in every region of the nation. As per the figures provided by
department for business energy and industrial strategy, London has around
1544 enterprises for every 10000 adult residents, that is, above national
average. In the other east of England, there are around 1090 organisation
per 10,000 residents which is above the United Kingdom average.

Impact of SME’s for the UK utilising two different
industries
The construction sector accounts for high number of businesses in United
Kingdom. Even though, trails significantly behind retail and wholesale
trade at the time it comes to number of employees and turnover. The retail
industry is stand out in the list. The make up around 9.3 % of the all
businesses in United Kingdom, but employ around 18.4 percent of private
industry workers and yield 33.7 percent of turnover by all the industries of
United Kingdom.

Impact of SME’s for two EU countries
The small and medium organizations are said to be the backbone of
economy of Europe. They represent 99 Percent of organizations in
European Union. In the last 5 years, small and medium organizations have
created around 85 percent of job opportunities and also administered two
third of total private industry employment in European Union.
Entrepreneurship and small and medium organisations are the crucial
elements to ensure economic growth, job creation, innovation and social
integration in the Europe.

Conclusion
As per the above mentioned report it has been concluded that small and
medium enterprises significantly contribute in growth and development
of the economy of a country. These organisations are the key to growth
of the nation as they provide job opportunities to the local citizens of the
country and improve their living standard which ultimately lead to
development and growth of economy of the nation.

References
 Burns, P., 2016. Entrepreneurship and small business. Palgrave
Macmillan Limited.
 Dunne, T.C., and et. al., 2016. The impact of leadership on small
business innovativeness. Journal of Business Research, 69(11),
pp.4876-4881.

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