Assessing the Impact of Small Businesses on the UK Economy

This presentation analyzes the impact of small businesses (SMEs) on the United Kingdom's economy. It defines small businesses, provides statistics on their prevalence (over 99% of businesses in 2017) and contribution to employment (35%) and turnover (19%). The presentation highlights the importance of micro-businesses and their significant role in the UK economy, despite their relatively small size. It presents data on employment and turnover, emphasizing the combined annual turnover of SMEs, which was around £2 trillion in 2017. The presentation further discusses the impact of small businesses on turnover, employment, and overall economic growth, noting the intense competition within the sector. It concludes that SMEs are the backbone of the UK economy, particularly in regions like Cambridge and London, and encourages the growth of these businesses. The presentation references several academic sources to support its claims.

THE IMPACT OF SMALL BUSINESSES ON THE
ECONOMY.
NAME OF THE STUDENT

INTRODUCTION
 The given presentation will assess the impact of small business houses on the economy of
the United Kingdom.
 A small business can be described as one which employees less than 250 employees.
 In the year 2017, there were around 6.2 million SMEs in the United Kingdom which was
more than 99% of the business.

STATISTICS
 The micro business enterprises have around 0-9 employees working towards the success of
the organization.
 There were around 5.7 million micro business houses in the United Kingdom as on 2017 out
which 96% comprises of business.
 Although the small businesses have little contribution with respect to the income to the
economy and the houses are not considered to be a relevant part of the economy but they
are indeed very important and contribute to a large scale development (Terjesen, Hessels
and Li 2016).

STATISTICS
 Although the small business organizations being discussed have less than 10 people who
are employed for the operations, such business contribute to around 35% of the
employment and 19% of the turnover which is present in the given industry
 The combined turnover annually of the SMEs was around £2 trillion in 2017 which is
around 50% of the total private sector turnover in the business in the United Kingdom
 The total employment in the given segment was around 16 million which means that it
comes up to 62% of the private sector employment in UK (Kickul et al. 2013).

THE IMPACT OF MICRO AND SMALL BUSINESS
 With respect to a medium business enterprise, around 250 people had been appointed for
the given purpose, whereas in the case of a small business just 9 people are employed.
This ultimately results in a limited opportunity for employment.
 However, a good aspect is that the businesses have been increasingly considerably, which
ultimately leads to better opportunities.

CONT.…
 Although the medium business enterprises are larger in size, their impact on the economy
of the country United Kingdom, is not as positive as that of the small business houses.
 Around 98.9% of the businesses in the country comprise of small and micro business
houses. There exists intense competition in this segment (Mason and Harvey 2013).

IMPACT OF SMALL BUSINESSES AND START UPS
 The small business houses have the following impact on the economy of UK:
 Turnover
 Employment (Burns 2016.)
 Growth

CONTRIBUTION

Source: Mason and Harvey