Entrepreneurship Report: Unit 9 - SMEs, Brexit, and Economic Impact

This report provides a comprehensive overview of entrepreneurship, exploring various types of entrepreneurial ventures, including small business entrepreneurship, large company entrepreneurship, scalable startups, and social entrepreneurship. It delves into the similarities and differences between these ventures, analyzing their financial goals, size, risk factors, and employee structures. The report highlights the significant influence of micro and small businesses (SMEs) on the UK economy, presenting statistical data to demonstrate their contribution to GDP, employment, and economic growth across different sectors. Furthermore, it examines the impact of Brexit on SMEs, discussing their role in the extension of the social economy, job creation, and their ability to adapt and innovate in response to changing circumstances. The report emphasizes the importance of SMEs as a powerhouse of the UK economy and their contribution to various sectors like agriculture, manufacturing, and ICT services.

UNIT 9
ENTREPRENEURSHIP

TABLE OF CONTENTS

INTRODUCTION
Entrepreneurship may be defined as an activity in relation to setting up of for profit
attainment over the risks undertaken. It presents willingness of an individual in relation to
developing, organizing and managing business venture over the both financial and non-financial
constraints. Projected file is brief research that is conducted on entrepreneurship. Reserch include
all the elements of booklet. In this, report will provide deeper insight about the extent to which
varied entrepreneurial ventures differ as well as similar to each other. Further, it also entails the
contribution of SME’s in the economic growth and development of UK. Changed contribution of
small businesses on the economy of UK especially after Brexit is also contrasted. Reflection of
these business's contributions to economic growth also presented in research report. Moreover,
this assignment bring into view on entrepreneurial characteristics, skills and traits by rendering
examples of 2 successful entrepreneurs.
TASK 1
P1 types of Entrepreneurial Typologies and Ventures
Mainly Four kind of entrepreneurial ventures are been generally used by entrepreneur to
start up his/ her business (Barringer, 2015). Each of its types are dissimilar to each other, based
upon their size, operations, activities, and management and has a remarkable impact on an
economy for its development and growth. Few of them are stated below:
 Small Business Entrepreneurship: These are corporations which are owned privately
by an entrepreneur. These type of entrepreneurial ventures consists of fewer employees
with less annual revenue if compared to regular sized business. In United Kingdom there
exist a number of small businesses, which are more preferred by an entrepreneur and are
increasing day by day. There are around 5.7 million small business contributing to around
50 per cent employment opportunities of all private sector workers. These type of
businesses do not focus to take over an industry instead of that aims directly in feeding
their family by making a nominal amount of profit.
 Large Company Entrepreneurship: It is also a type of industrial enterprise which is a
legal entity made up of people’s association. Members of the company has a common
purpose and unite their efforts to focus on their individual talent to organize collectively

available resources and skills in order to achieve group or organizational goals. These
entrepreneurial ventures have finite number of cycles which grows from legislation law,
sustaining innovation, etc. In order to sell products in new customer markets these large
companies need to create new products.
 Scalable Start up Entrepreneurship: These type of entrepreneurs has a power to
change the world completely with their vision and can attract investors like venture
capitalists (Dees, 2017). This type of entrepreneurship is being done by Silicon Valley
and Venture investors.
 Social Entrepreneurship: Entrepreneurs of these entrepreneurship plays a significant
role in solving social problems by creating new products and services and also put
emphasis on the same. Their main aim is to make world a better place for living and not
to take over market or any industry.
Entrepreneurial Ventures Typologies:
 Corporate Level Entrepreneurship: It is termed as the comprehensive
reconstitution of different business functions which establishes the new corporation
(Inglehart and Norris, 2016). It could also be defined as, the modification of a
company through renovation of significant concepts on which it is constructed.
 Enterprise Level Entrepreneurship: Purposes or reasons for which an organization
exists are redefined through this process of enterprise level entrepreneurship. This
process is come into existence when organization's goal seems absolute and
unattainable.
 Business Level Entrepreneurship: By founding up, entrepreneurial operations are
break down into different categories on the basis of its role in existing Firm.
 Functional Level Entrepreneurship: New technology, product and service are
being developed in this Entrepreneurship level which eventually resulted in
improvised group and function within company.
Above highlighted are some touchstone used to develop and create entrepreneurial typologies.

P2 Similarities and Differences Between Entrepreneurial Ventures
Basis Large
Entrepreneurship
Small Businesses Social
Entrepreneurship
Financial Goals Set objectives which
are quite higher when
compared to any other
venture and mainly
focus at generating
high incomes and
profits.
Low goals as
compared to others as
they aim at generating
profits just to feed
their family and fulfil
their needs not to take
over an industry
(Baum, Frese and
Baron, 2014).
They work to help
others and to solve
social problems by
aiming at earning
profits to help others.
Size Consist of activities on
large scale and
operations conducted
all over the world.
Operates on small size
scale and could be
established in a region
or locality.
In early stage it is
small but grows itself
with time period by
expanding their
product line and
service area after
having enough
revenue to do so.
Risks As it is a big company,
there is presence of
high risk factors.
Business functions are
conducted locally, so it
contains low risk.
As such there is no
risk involved in
conducting these types
of businesses.
Employees Provides lot of
employment
opportunities and
consist many
employees which are
Low number of
employees as there are
fewer opportunities for
generating employees.
Have employees which
are working
voluntarily or with low
pay scale with the aim

required at each level
of management.
of helping society.
Similarities between different entrepreneurial ventures
Both big and medium size companies have a similarity in operation as they have to
perform business activities in a big area and their common vision is to expand their own
businesses continuously and effectively around the world. These two also targets for a common
aim to earn enough revenues and favorable profits. These entrepreneurial ventures enable
development and growth of economy as they render huge employment opportunities to people.
Both entrepreneurial ventures operate in same environment witch contain large number of
employees. Diversely, small and local businesses operate and perform business activities
comparatively at low level and have lesser employees. These business have low to medium risk
factors. Similarity between both businesses is that both work for meet the customer need.
Some micro, small and medium businesses have many dissimilarities. But Create wealth
for company is common purpose in these business.
P3 Statistics to demonstrate influence of Micro and Small Businesses on the Economy
Given definitions to each SMEs get changed from one country to another and from one to
another institution. Some of them has quantitative measures as their base and sometimes on
industrial sector. Encouragement of SME could contribute in economic growth by help the
government in poverty alleviation programs by rendering employment in society. World Bank
also concluded that this contribution of SMEs in increasing in almost every developing country.
In those countries' approx. 45 per cent and around 33 per cent of GDP is contrasted. Almost
20.21% full-time and temporary employment opportunity are given by small firms., this was
concluded by sampling 104 countries which were developing. Its been observed that 47.95% is
shared by SME's, after excluding the small and medium business., this contribution was equal to
that of large firms. it is find that contributed share of SME's are reduced with lowering country's
income level. Which is also shown in the below figure:

Illustration 1: SME contribution to GDP by countries Income level.
(Source: The impact of SMEs in the global economy, 2018)
After its analysation it was observed that Developing country's small business contains
more of micro enterprise. Also, These entities have limited contribution in their economic
growth and development. According to available data it could be said that SMEs renders country
employment opportunities from 60 to 70 per cent .while accounting to 55 per cent of GDP (The
impact of SMEs in the global economy, 2018). There is 95% of small and micro enterprise
present In economy, which gives 83.1% employment but accord contribution only 25.5% in
GDP. In the below figure it is assumed that better measure could be initiated about small
business sector if consistent data is available on employment shares, productivity, GDP
contribution, etc. that might be available to most countries.

Illustration 2:SMEs's Contribution in terms of number of firms,GDP and employment share
contribution of countries having dissimilar income level.
(Source: The impact of SMEs in the global economy, 2018)
While considering all the above facts and illustrations it is suggested that a powerful
small business may be a significant element of developed economies (Lowe and Marriott, 2012).
If suitable working environment and condition, social safety are given by small business than it
could benefit large number of people included in neglected group of society in living better
Quality of life. It shall be easily analyses from the mini research conducted on UK’s
SMEs that organizations are performing quite well and effectively for economic growth.
Above all instances clearly depicts that small businesses and Micro businesses put a
drastic impact on economy and effects its growth. It also affects employment generation
opportunities available to every individual.

From the above chart it is shown clearly that businesses effectively expanded itself into
various fields which leading to enhancement of overall growth of economy. Growth of SMEs are
presented with their availability in every sector contributing economic growth (Financial
Management Challenges In Small And Medium-Sized Enterprises: A Strategic Management Approach, 2015).
Illustration 3: UK SME 2018.
Source: (Percentage of small and medium enterprises (SME) in the United Kingdom (UK),
2017.)

Personal services such as beauty kits, households have 17% of majority share and another 17%
are influenced by professional service sector. Further, retail and sale share nearly 16% of market
in SME. 14% of market is hold by entertainment and media communication services industry
which also including computer programming software business. (Hobolt, 2016). Likewise,
transportation industry shares 2% in UK economy growth.
It could be easily analyses from UK’s SMEs mini research that each and every firm is
performing well and contributing at their best in growth of economy. Above chart shown the
statistical data of diversified sector, which help UK to sustain its market stability.
TASK 2
P4 SME's influence in the extension of social economy after Brexit
Brexit originated from the word "British Exit", which indicates disassociation between
European Union and Great Britain. Brexit lead to an economic drop down as domestic currency
was dropped down hugely and remain only 10% above the Euro's value. Following are the
impact of SMEs on UK's economy aftermath the Brexit:
 Powerhouse of economy : In UK small businesses are responsible for over 15.2 million
jobs by providing increased employment opportunities every year as new businesses are
emerging into the markets. After Brexit micro emerged with small businesses. There
were 3.5 million of these businesses which are increased to 5 million in the present date,
as an impact of this there is a marginally remarkable increase in population of all
different company. Some firm also fallen due to its adverse effect on them.
 Employment: As start-ups Establishment have become a huge social movement
entrepreneurship rates have increased around the globe. After Brexit technologies have
grown such as smartphones, broadband and self-employment.
As small businesses are backbone to the UK's economy, therefore their contribution is
important. After Brexit confidence have developed by an improvement in economy and it's
impact is being felt more strongly in whole British. Enterprise sees it as positive economic
outlook which renders ambitious opportunities for growth. (Storey, 2016). SMEs created new job
opportunities and has also increased the competition amongst peers. This continuous struggle

brought best out of every business which in turn resulted in win to win situation for both
provider and the customer. After Brexit new entrepreneurs brought innovations, skills and ideas.
SMEs helped UK’s economy to grow their markets in many other countries and together these
SMEs produces around 60% of the total industrial output and approximately 40% of total taxes
and profits. For UKs economy small businesses acted as a cushion against recession by adapting
and innovating as per changing circumstances and situations. SMEs contributed in developing
sectors such as agriculture, manufacturing and ICT services.
Brexit has affected the economy crucially and widely, and also had departed economy to
major parts of world. Though SMEs exist in large numbers and do not generate large amount of
money contributes to its greatest in growth of world’s economy. Hence, SMEs have contributed
a lot in growth and development of UK’s economy after Brexit.
TASK 3
P5, traits ,skills and Characteristics of 2 victorious entrepreneurs
There are so many remarkable entrepreneurs are present in world, who achieved and
earned unmatched image of themselves in people's brain. Jeff Bezos and Jack Ma among them
are at the top of all. Following are some leadership qualities of Jeff Bezos, CEO of Amazon:
 Prioritizing Customer Service: He is replicated for tradition of empty chair, as he is
used to pull an empty chair every time during any staff meetings, conferences, etc. That
empty chair indicates person with his absence in the room such as consumer. This
tradition has provided help his team for conscious of way the customer's feeling with
context of decisions. 80% of set measurements of goals are for customers.
 Having backbone: This is contribution of 14 leadership principles of Amazon. As
Bezos feels that absence of proper freedom to present once's opinions can cause conflict
as well as innovation efforts and opportunities.
 To be Little Crazy: He is further referred for his ability to think outside of box or for
reshaping the box or for throwing it away altogether. According to him Breaking away
through the pack and to frame crazy decisions on basis of innovation (8 Keys to Success
from Jack Ma, Self-Made Billionaire and CEO of Alibaba, 2018).
Following are some of his personality traits:
 Big Thinker: Unbelievably he is a big thinker and always had a method of obtaining
teams to think in huge aspect.

 High Standards: He has very high standards, and had a way of really having it.
 Strategically and Tactically Impatient: He is considered as thoughtful for strategically
patient along with tactically impatient (Nabi and et.al. 2017). It means his conviction for
purpose of vision of long term and where he has desire to take something.
 Amazing Learner: He is curious and open for learning innovative areas along with
topics and opinions.
Jack Yun Ma is the founder and executive chairman of Alibaba group. Following are his
personality traits, skills and characteristics:
 He Values Attitude: Jack Ma has learned various lessons and now gives emphasis to the
importance of attitude.
 He Unites people under a individual Goal: It could be understood without any matter
how hard anyone tries he will be not capable for convincing it to every single employee.
He accepted changes which also helped him to be so successful instead of uniting his
company undertaken with vision of some individual.
 He has Foresight: He has a belief that good leader must have a foresight. An
entrepreneur should try to use his foresight to remain one step ahead of other peoples.
 He hires People with superior skills: In his aspect "Any employee must have presence
of superior technical skill than an entrepreneur of that organization. If he doesn't do that,
then entrepreneur has done mistake in hiring wrong person for the job".
 He is Tenacious: Ma also said that leaders should have a foresight to tenacious and have
a clear vision.
 Wilful: Ma was rejected for around 30 jobs but his failure taught him determination as a
result Ma's learned wilfulness.
P6 Aspects of Entrepreneurial Personality
There are several factors which leads to develop as well as influence mind-set of an
entrepreneur. Childhood is major time factor which designs the mind of an individual. As in
case of Jeff Bezos, he was very fond towards technology and graduated valedictory of high
school. He was already having interest to start up a business. A dream institute was started by
him for students of fourth, fifth and sixth class during the time of high school. Therefore,

proceeded for taking degree in computer science as well as electrical engineering. Education
made him to enhance his technical knowledge and gave exposure related to several aspects. His
financial knowledge was very good (Agwu and Emeti, 2014). Therefore, he moved forward for
starting up his own e commerce. Lifestyle affects very individual. Jeff Bezos was an innovative
and business minded person in his childhood. As a teenager he was more focused for bringing
out some new ideas of business and give them a practical implementation. With the support of
family, he acquired education of his own interest. This provided him enhanced knowledge of the
field in which Jeff Bezos wanted to enter with his innovative idea. The cultural background of
this entrepreneur was very supporting. As customers liked the idea of his first business which
was online book store. With this immense support, he moved forward to improve his business
and started amazon. Therefore, these were the aspects that supported him to develop an
entrepreneurial mind-set.
In case of Jack Ma, his story depicts a greater transformation from rags to riches. Since
childhood, he was very hard-working, consistent and positive. Despite of many obstacles that
came into his life due to poverty were not able to stop. Family was very supportive and
motivated him to take business risk in life. Introducing something innovative was always a goal
which persuaded Jack Ma to start an e-commerce. With the support of society that included his
friends and wife, he was able to raise funds for project. These aspects are known to be very
essential for motivating individuals for possessing an entrepreneurial mind-set. With all the
rejections faced by him while giving interviews for every job he applied. This phase of life even
failed to demotivate such an individual of positive attitude. Even the cultural background of Jack
Ma was very supportive for accepting innovative ideas like e-commerce (Alexander and et.al.
2015). Lifestyle of him was the major influential factors as he was an opportunity seeker as well
as a hard working person. Apart from that, his creativity and the ability of analysing external
business environment helped him to grab a perfect commercial idea which can survive in such
kind of surrounding at national as well as international level.
TASK 4
P7 Factors that can hinder or foster Entrepreneurship
There are many aspects which can motivate or resist traits of entrepreneurship trait in an
individual. As with a supportive family every person has liberty to express whatever family
member might think related to any aspect. Therefore, innovative ideas of entrepreneurs are

accepted and they are motivated by members to adopt this habit of thinking out of box. While
living in a conservative surrounding makes the person demotivated. He becomes unable to
express his or her ideas related to any aspect. As they will not be supported or appreciated for it.
Lifestyle also plays a significant role for developing entrepreneurial traits. Individual who is
already focused, consistent, hardworking and seeks for opportunity has the ability to become
successful entrepreneur. These traits develop positive attitude in a person and he seeks every
failure as a source for improvement. They always focus on enhancing their skills and grab more
knowledge as well as exposure of all changes in environment. These people are regarded to be
obedient and disciplined (Burns, 2016). Apart from this, individual who have different kind of
lifestyle and does not possess these qualities are ordinary people who does not have any
entrepreneurial traits. As they are not innovative, neither thinks for something different.
Generally, these people are satisfied with their ordinary lives. Apart from that, cultural
background also influences entrepreneurial traits. As every vulture has different practices and
belief that leads to develop their mind by default. Some cultures that initiate business practices
motivate people for adopting it. Their families have their own business and encourages their
child to follow the same. Whereas those backgrounds that does not supports trade activities and
focuses more or serving people in companies. Similarly, their child is also taught for pursuing
the same; which in directly demotivate individual from having an entrepreneurial mind.
Education is one of the major factor that also facilitate in building entrepreneurial traits. With
accurate knowledge of particular field person can enhance skills related to any aspects. These
skills make individual able to handle business effectively. Society also plays an important role
or fostering or hindering this quality. An entrepreneur always works for introducing such ideas
which can reduce human labour. These products or services are generally regarded to be very
new and different. It always needs support of society to accept the idea and motivate individual
for implementing this creativity in present scenario (Gielnik and et.al. 2015). When society
appreciate these new concepts, it motivates person to think more and provide such kind of
services for deducting efforts for daily activities. When society does not support entrepreneurial
ideas, individual becomes demotivated. Under societal pressure, losses capacity of thinking
innovative ideas or implementing them in practical scenario.
In case of both entrepreneurs discussed in report their family supported them for their
business ideas. It motivated them to implement such concept in real scenario. With the support of

society, they were able to raise funds for their business that helps them a lot to establish. Also,
Jeff Bezos and Jack Ma were completely hard-working, confident and have every necessary
quality for a successful entrepreneur.
CONCLUSION
The assignment made on entrepreneurship put emphasis on different types of
entrepreneurial ventures and concluded that they are mainly of three types; small, large
company, scalable start-ups. All these entrepreneurial ventures differ from each other on the
basis of size, financial goals and operations or activities. Further, through research conducted to
illustrate impacts of small businesses on UK’s economy concludes that small businesses could
have a huge impact on the economy’s growth and development. Another mini research was
conducted to show contributions of SMEs on economy after Brexit which gave outcomes that
SMEs have contributed UK to recover its economy after drop down. Moreover, mini research
implemented on two different successful entrepreneurs concludes that their commitment and
determination towards work motivated them to perform well, there are many factors that hinder
or foster path of an entrepreneur.

REFERENCES
Books and Journals: