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

This report, prepared for an entrepreneurship assignment, meticulously examines the significant impact of micro and small businesses (SMEs) on the UK economy. It begins by interpreting and assessing relevant data and statistics to highlight the crucial role of SMEs, which constitute a substantial portion of businesses and employment in the UK. The report details the contributions of SMEs to job creation, GDP growth, and the reduction of inflation, emphasizing their positive influence on the overall growth of the UK economy. Furthermore, it explores the importance of small businesses and start-ups in fostering socio-economic growth, including high employment, industry development, and improved service quality. The report also differentiates between small, medium, and large businesses, evaluating their distinct impacts on the UK economy, especially during economic downturns. A comparative analysis of the number of SMEs and SME employment in the UK with other countries is presented. The conclusion underscores the increasing entrepreneurial ventures and the significant role of SMEs in enhancing employability, supported by a comprehensive list of references.

Entrepreneurship
Task 2
Presented by
(Name of Student)

Interpret and assess relevant data and statistics to illustrate
how micro and small businesses impact on the UK economy
• Micro and small
businesses:
• Employees constituted with less than 250
employees
• 5.4 percent million of SMEs in UK
• Employability opportunity 32%
• Rate of Employee turn over 19%
• 60% employment in UK is surrounded with
SEMs
• 1.18 trillion annual turn over based on UK Small
and medium enterprises

Impact of Small Business on UK
economy

Impact of Small Business on UK
economy
• SMEs are providing 15.2 million job
opportunity to the employees
• Data shows in comparison to large and
medium enterprises UK SMEs are
raising their heads gradually
• The number of employee recruitment
has been increased up to 50%
• Number of GDP contributor has
become high
• Rate of inflation has been decreased
with the growth of SMEs in UK
• Positive impact on overall growth of
UK economy

Explain the importance of small businesses and business
start-ups to the growth of the social economy in the UK
• Socio economic growth is measured with indicators such as GDP, life
expectancy, literacy and levels of employment
• Areas of socio-economic growth:
• High employment opportunity
• Growth of the industry
• Low rate of inflation
• Large number of GDP contributor
• High service quality

Growth of the social economy in the UK
After Germany and France UK SMEs play most significant role in developing
socio-economic structure

Evaluate the differences small, medium and large
businesses make to the UK economy, applying relevant
published data and statistics
• Small Business:
• Grocery stores, hairdressers, consultants, travel agents, internet commerce storefronts are
primarily considered as small business enterprises. In small business enterprises the
business experts tend to hire local employees. On the other hand, the organization is
restricted within specific geographical boundary.
• Medium Business:
• Medium-sized enterprises are non-subsidiary, independent firms which employ fewer than a
given number of employees
• Large Business:
• Large companies have finite life cycles. This particular business process has
expanded their wings beyond going the regional boundary. As a result, the target
customers of a large entrepreneurship are spread in the multinational countries.
Business experts in a large entrepreneurship have to hire innumerable people
from different geographical boundaries for providing effective services

Evaluate the differences small, medium and large
businesses make to the UK economy, applying relevant
published data and statistics
• At the time of recession Small enterprises are affected more
enormously due to limited resources

Employability Opportunity

Critically examine how small businesses have an
impact on different levels of the UK economy (at local,
regional and national levels), making comparison with at
least one (1) other country
• Impact of SMEs on
regional level
• High employment opportunity
• Growth of the industry
• Low rate of inflation
• Large number of GDP contributor
• High service quality

Impact of SMEs on national level
• High employment
opportunity
• Growth of the industry
• Low rate of inflation
• Large number of GDP
contributor
• High service quality

Comparative analysis between the number of SMEs
and SME employment in UK