Entrepreneurship and Small Business in the UK Economy Report

This report provides a comprehensive analysis of the contributions of micro and small businesses (SMEs) to the UK economy, particularly in the post-Brexit era. It critically evaluates the significant role SMEs play in generating employment, fostering economic growth, and addressing economic challenges. The report examines relevant data, including job creation and financial contributions, highlighting the impact of SMEs in various sectors. Furthermore, it emphasizes the importance of SMEs and business start-ups in promoting social and economic stability, encouraging investment, and reducing cultural differences. The analysis covers the period since 2015, assessing the resilience and adaptability of SMEs within the evolving economic landscape. The report concludes by underscoring the positive impact of SMEs on the UK's economic and social structures.

Entrepreneurship and Small
Business Management

a) Evaluate critically the contribution of micro and small
businesses to the U.K economy in the last three years
Since 2015, and the post Brexit phase, SME’s in UK has
played a very vital role in setting up of the environment that
has created the suitable rise in the management of the
economic issues that are been faced by the country. It has
been mostly operating in the private sector, which has
emerged as an effective source of employment to many
people. Especially in London, since 2016-2017, SME’s have
contributed in generation of about 3.5 million jobs, supporting
the economy with and growth of about £2,500 billion.

B. Assess relevant data about how small and medium
organisations affects the economy of a country
• From the recent analysis and surveys that are been
carried within UK, it is been found that the small and
medium level enterprises has played a very deep role in
the setting up of the goals and objectives in the
organisation to a greater extent.
• Since the great recession of 2009, UK has grown to a
greater extent. Many SME’s and start-ups have
contributed in the growth and development of the UK’s
economy.

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• As per a survey, about 60% work force in London and tits peripheral
cities are working in a form of Small or medium level organisation,
which makes them the highest employing section in the UK’s economy.
• Other than this, in the post Brexit phase, they have created a positive
environment for the setting up of new jobs and improving the overall
performance of the economy.
• This helps the organisation to carry out the business activities and
managing the people from different cultural backgrounds and
countries to work within UK.

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• The following of this measures will
help the economy of UK to get the
proper exposure to global market
scenarios and trend that are
undergoing, in order to carry out
the business activities and
operations in a significant manner.

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• Since 2015, the UK’s economy has been quite stabilized
due to tremendous growth of the SME’s within the
country.
• The number of small and medium level firms have
increased by 37% in past 3 years in UK.
• Majority of SME’s are based on the outsourcing and thus
have the chance to develop effective contacts with
international clients.

C. Importance of a SME and business start-ups
within the growth of social economy in UK
• The SME’s and other business start-ups are very
important for developing a good management
environment that will help the organisation which will
support the proper management of business operations
and actions that are been followed by the firm.
• In the present day UK, in the post Brexit stage, the
economy and social structure of the country is facing a
tremendous issues and drawbacks that have affected the
country in an adverse manner.

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• The social disturbances and falling down of economic
conditions of the nation was a major issue.
• In that case, the SME’s and business start-ups have
played a very crucial role in setting up of proper guidance
to economic and social conditions within the nation.

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• Other than this, it helped the economy of the country to improve its
business ties with other nations around the globe and encouraged them
to invest within UK and its SME or business start-ups.
• This will also help in reducing the cultural differences and will help in
creating revenue from the available human resource that will catalyse
the development of the business organisation to a greater extent.
• The client from various countries will look after the proper handling of
the opportunities to invest their capital within the start-ups and SME’s
of UK, promoting the economic growth and rise in the financial as well
as social stability.

References
• Burns, P. and Dewhurst, J. eds., 2016. Small business and
entrepreneurship. Macmillan International Higher Education
• Fayolle, A. and Gailly, B., 2015. The impact of entrepreneurship
education on entrepreneurial attitudes and intention: Hysteresis and
persistence. Journal of Small Business Management. 53(1). pp.75-93.
• Hatten, T.S., 2015. Small business management: Entrepreneurship
and beyond. Nelson Education.
• Schaper, M.T. and et.al., 2014. Entrepreneurship and small business.