Entrepreneurship and Small Businesses: Impact on UK Economy

This report provides a comprehensive overview of entrepreneurship and small businesses, focusing on their significance within the UK economy. It begins by defining entrepreneurship and different types of entrepreneurial ventures, including scalable start-ups, social entrepreneurship, small businesses, and large company ventures, along with a typology of entrepreneurs. The report then delves into the impact of micro and small businesses on the UK economy, supported by data and statistics, highlighting their role in job creation and contribution to the GDP. Furthermore, it discusses the importance of start-ups in the growth of the social economy in the UK, examining the characteristics, traits, and skills of successful entrepreneurs through case studies of Elizabeth Gooch and Tom Mercer. The report also contrasts entrepreneurial mindsets with those of business managers. Finally, it addresses the challenges of entrepreneurship and the factors that influence entrepreneurial motivation.

ENTREPRENEURSHIP AND
SMALL BUSINESSES

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK1.............................................................................................................................................3
P1 and M1 Different types of entrepreneurial venture...............................................................3
P2 and D1 Similarities and the differences between the entrepreneurial venture .....................4
TASK 2............................................................................................................................................5
P3 & M2. Data and statics which reflects the impact of micro and small business on economy
of UK...........................................................................................................................................5
P4. Importance of start-ups in growth of the social economy in the UK...................................5
D2................................................................................................................................................6
P5................................................................................................................................................7
P6................................................................................................................................................8
M3...............................................................................................................................................9
D3................................................................................................................................................9
P7..............................................................................................................................................10
D4..............................................................................................................................................11
CONCLUSION..............................................................................................................................11
....................................................................................................................................................11
REFERENCES..............................................................................................................................12
Online........................................................................................................................................13

INTRODUCTION
Entrepreneurship is an activity which is been done by the process or an things which is
been done by the entrepreneur in their business, the effects that the entrepreneurs use to make
and work which they use to do in their business to make it grow, all the things comes in under
the entrepreneurship (Barringer,2012). The main things is that the entrepreneur takes the task to
manage the business and do there business to earn the profits, it is started with the staring of the
business. The characteristic of the entrepreneurship is been characterized by the innovation and
the risk takings of anything. Austin Fraser is an consultant company which use to consult there
entrepreneur to make there work little easy. in the below information it is been explained that
what is entrepreneur and how does it work and bare the risk.
TASK1
P1 and M1 Different types of entrepreneurial venture
Entrepreneur is an person which is an individual which is been use to start the business
by the accepting the risk and they would innovate the proper ideas to develop there business.
entrepreneurship is an activities which an entrepreneur use to develop while establishing its
business, and all that activities which are been included that (Cowling and et. al. 2015). The
Venture is been meant as an business it is called as the small business which is been developed
by an individual or an groups of the people use to do in the business so that they would make
their business to grow properly. The ventures is been called as an small business.
Types of an entrepreneur
 Scalable start up entrepreneurship:- there are those entrepreneur which use to have the
high vision and they are that peoples which are been known by the people on the time of
entering the business market. These are those entrepreneur which are little crazy types
and they like to attract the people towards them and for that they use to innovate the
products which is little unique.
 Social entrepreneurship:- These are the entrepreneur which is use to make their products
and the services which are been according to social needs and which would be beneficial
for them to and which the products and the services would matter the social matters
(.Defourny,and Nyssens., 2010).

 Small business entrepreneurship:- in this the entrepreneur use to develop the small
business which is been developed or been established as to fulfil their basic requirements.
These entrepreneurs are like the electrician, plumbers, etc.
 Large company entrepreneurship:- this is an business which use to produce the products
and the services which are according to the long run as they wants to stay in the market
for the long time and they do not want to exit the market in an short time.
Typology of the entrepreneur
 Copycat entrepreneur:- these are that entrepreneur which use to copy the other
entrepreneur and their ways and they do not try to invent the things according to their
minds and they don't even try to think different, they copies all the things of the other
entrepreneur (Delgado, Porterand Stern, 2010).
 Accomplished entrepreneur:- these are that entrepreneur which had been passed through
all the activities or the levels of the issues and the problems and then also they had made
accomplishes their business in an proper way.
 Research entrepreneur:- they are those entrepreneur which use to mainly research before
doing any of the business and they do not have to do the proper way.
 Determined entrepreneur:- they are the people who are very determined about their work
and they like to learn the things and they like to do their work in an better manner.
P2 and D1 Similarities and the differences between the entrepreneurial venture
Types of entrepreneurship similarities differences
Scalable and small business The similarities of the both
entrepreneurship is that they
are having the nature which is
of doing the research
In this the entrepreneur have
the objective to make their
business popular.
Large company
entrepreneurship and social
entrepreneurship
It both having the different
qualities but they are having
the same kind of an process
The large entrepreneurship
works on the large scale for
the long run and the social
works for the society.

TASK 2
P3 & M2. Data and statics which reflects the impact of micro and small business on economy of
UK.
Small and medium sized business plays key role in shaping the economy of UK in a
stable manner. It is helping British economy to receive growth and also helping the countries in
providing job opportunities. According to the official data small scale industries are those who
has less 250 employees and it also states that there were 4.9 million business existing in Britain
and out of all those almost 99 percent were small and micro business. They have also employed
a large number of people and in 2013 it rose to 14,424,00 people. Companies who has less than
250 employees and are termed as micro, small and medium had total turnover of £655, £515,
£477 billions respectively (Wang and Altinay, 2012). National statistics says that 11.8% small
business are engaged export whereas 11.4 percent are involved in activities related to import.
Government also realized that how important the small business are for their economy so they
came out with a scheme called “Small Business: Great Ambition”. This scheme was launched in
the last month of December as had a aim of designing policies through which small businesses
can be expanded easily. Government also came with pilot scheme for growth loans for small
medium enterprises (Cowling and et. al. 2015). Small scale industry have potential to give
employment to a large number of people in different sectors because a lots of micro and small
business penetrates in UK. Comparing to the other countries of European Union(UK is not part
of EU now) there is a very competitive market here. These industries has added a gross value of
£ 373 billion or approx forty nine percent in the GDP of UK.
P4. Importance of start-ups in growth of the social economy in the UK.
Social economy is the economy of the country which deals with the social factors of the
society. It comprises of environment, welfare, food and energy. This type of economy does not
have to do anything with the production and consumption of goods and services. Elements like
globalization, climate change and equality are some kind of components on which the growth of
the company depends. Small scale business impacts the social economy as they are normally
operates their business at the local level or at a specific area (Wang and Altinay, 2012).
Entrepreneur brings creative and that brings a social innovation through which transformation of
society takes place. People get to know new things, their lifestyle changes and this allow them to

try new things. Social economy helps in attaining sustainable development and small scale
industry are adequately helping in the initiative. Using the resource in a limited manner and
taking out outputs at large number is the role of SME as they are based on social innovation.
These business can adopt CSR (Corporate social responsibility) activities or model as every
organisation should know their responsibility towards social factors affecting the politics,
environment, demographic and etc (Karlsson, and Wigren, 2012).
D2.
Expansion of small business has a wide impact on the different levels of economy of UK.
We can compare between two countries that how it influences local, regional and national level.
India's small scale industries contribute 15 percent to the GDP of the country whereas it
contribute 37% percent in UK. Indian industries does not much influence as compare to British
in their own economy because in India government hardly make policies and the companies lack
funding and economic environment. In India these industries can impact much on the local level
as more than half of the India's population lives in rural areas but in UK it will affect more the
national level economy as business are direct link to the government.
P5
characteristics traits and skills of Elizabeth Gooch
 Helps client to generate improvements in operational performance and efficiency
 Implementing the programmes on a fixed cost
 On fixed time basis
 Full determination towards business and achieving goals
 Not afraid to take risk. She is never afraid of taking risk because she has faith that she
will definitely success.
 High level of confidence
 Money management
 Expert networking
 Ability to sell and promote
 Hard work
 Guaranteed return on investment and its sells receipt and revenues are based on the result
delivered
 Collection of right information which is needed to increase efficiency

developing software to help to fulfil the tasks
 Collecting data in real time which helps all the departments of a company to control the
production process
characteristics traits and skills of Tom Mercers case
 He had strategic planning.
 His personal characteristics which includes optimism, vision, initiative, desire for
control, drive and persistence, risk tolerance etc.
 His interpersonal skill which includes leadership and motivation, listening,
communication, personal relations, negotiation, ethics etc.
 Critical and Creative thinking skills which includes creative thinking, problem solving
and recognising opportunities (Drucker,2014).
 Practical skills includes planning and organising, goal setting and decision making
 Knowledge means business knowledge, entrepreneurial knowledge, opportunity specific
knowledge
 Discipline
 Hard Work
 Level of confidence
 Continuously looking for opportunity to improve: they have ability to look at everything
and focus towards their goals to improve their business.
 Having strong communication skill which will help in strengthen them to effectively sell
their product or services to clients and customers
 Passion is the most important skill of the successful entrepreneur. He love his job and
are willing to work extra hours for achieving the objective and growing their business.
 He is Goal oriented. He is all about setting goals and works towards achieving the goals.
They are determined to make their business succeed and remove every difficulties.
How Elizabeth Gooch and Tom Mercer are differentiated from those of business
managers?
They both are very goal oriented persons. They work towards their goal because they know haw
to manage money and how to manage staff. They are not afraid of taking risk so that they can

easily take decisions regarding business. They have very strong communication skills which
will help in strengthen them to effectively sell their product or services to clients and customers.
passion is the most important skill of the successful entrepreneur (Morris and et. al. 2012). They
love their job and are capable to work for some extra time for achieving the objective and
growing their business.
P6
Entrepreneurs are all different. They all are having a different mind set which will help them to
work towards their success. Their entrepreneur mindset suits to their personality or even then
field in they are working.
When looking at the challenges of entrepreneurship which will help them to learn from
experiences of others.
Entrepreneurial motivation is a process of transforming a person into a successful businessman
who creates opportunities and helps in maximizing wealth and economic development. It
defined as stimulated desire in entrepreneurs which will help them to attain their organizational
objectives. it is a process which help in identifying strength and opportunities which will help in
developing and running a business by facing threats and risk effectively.
There are some factors which will enhance entrepreneurial personality which reflect their
entrepreneur motivation and mind set are as follows:
 Self actualisation: it refers to the need for freedom and self fulfilment which will help a
person to become a good entrepreneur.
 Positive attitude: the positive attitude is an important part which will motivates an
individual to become an successful entrepreneur. Positive attitude can lead to a
constructive thinking which will help an individual to achieve the goals.
 Self motivation: most of the entrepreneur are self motivated because of their self
motivation they will achieve their goals.
 Financial background: finance is an important resource which motivates a person to
become a successful entrepreneur (Santos, 2012).
 Availability of resources: it will help an entrepreneur in achieving its goal.
 Technology advancement: it acts as a way to transform a idea into product.

M3
Business and entrepreneurial skills affect an individual to become a successful entrepreneur and
also affect the work which will they do to receive the goal. The issue of business and
entrepreneurial skill and competencies are closely related to migration, skilled labour and
attitude towards entrepreneur.
D3
Entrepreneurs take major financial risk, work for long time and build a business from ground up.
There are five most important motivational drivers of entrepreneur are as follows:
 Money
 Flexibility
 Control
 Team work
 Legacy
P7
Personal background and experience plays an important role in the success of a entrepreneurship.
It will help an entrepreneur to easily achieve their goal because of experience and knowledge.
They have their personal skills to run an entrepreneur effectively and efficiently towards the
objective. There are some personal skills which are as follows:
 Optimism: It is truly an asset which will help in tough times so that many entrepreneurs
learn to work for them
 Vision: It helps in compelling vision of the future and then inspire other people also to
engage with that vision.
 Initiative: It helps in problem solving and business improvement projects
 Risk tolerance: They are able to take risks and are capable of making decisions according
to that.

 Ability to manage money: They have knowledge to manage a business and business
budget also.
 Ability to raise money: In order to investment they know from their experiences from
where to get money.
 Ability to relieve stress: if any entrepreneur work with stress then he is not able to
achieve its goals.
 Ability to identify strength and weakness: as an entrepreneur you must identify the
strength and weakness of your team members so that they can help you to obtain
objective.
 Ability to hire effective people: it is the most important skill which a entrepreneur could
have. Having great team will lead you to achieve new strengths and build a company
culture so that people wants to be part of that organisation.
 Ability to manage staff: once you have great members in your team then next step is to
manage that staff. If you don't know how to manage then just take time to learn that how
to motivate them to do work towards the goal.
D4.
Personal background and experience affects its business in both positive and negative
way (Morris and et. al. 2012). The two world's most popular personality Jack Ma, founder of
Alibaba and Donald Trump, American president has both belong from different background as
has different experience. Jack Ma always has failed a lots of time but learn from his mistakes
whereas Donald Trump was a arrogant and proud person who was failed in his casinos and
hotels building because he was more concerned about his personal attitudes.
CONCLUSION
This is conclude that small scale industries are the something which takes time to grow
but equally contributes in a great manner as the large scale. Its the entrepreneurs who comes out
with a new innovation and idea which has capacity to transform the society. UK government has
also understand the importance of these companies and has come out with the policies which
encourages people like Elizabeth Gooch and Tom Mercer to open there own business.
Entrepreneur should understand there responsibility towards a society and adopt CSR activities.

REFERENCES
Books and Journals
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entrepreneurship in Europe and the United States: Convergences and divergences.
Journal of social entrepreneurship, 1(1), pp.32-53.

Delgado, M., Porter, M.E. and Stern, S., 2010. Clusters and entrepreneurship. Journal of
economic geography, 10(4), pp.495-518.
Drucker, P., 2014. Innovation and entrepreneurship. Routledge.
Hall, J.K., Daneke, G.A. and Lenox, M.J., 2010. Sustainable development and entrepreneurship:
Past contributions and future directions. Journal of Business Venturing, 25(5), pp.439-
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Herrington, M., Kew, J., Kew, P. and Monitor, G.E., 2010. Tracking entrepreneurship in South
Africa: a GEM perspective. Graduate School of Business, University of Cape Town.
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legitimacy, human capital and social capital. The Journal of Technology
Transfer. 37(3). pp.297-312.
Kirzner, I.M., 2015. Competition and entrepreneurship. University of Chicago press.
Morris and et. al. 2012. Framing the entrepreneurial experience. Entrepreneurship Theory and
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Santos, F.M., 2012. A positive theory of social entrepreneurship. Journal of business ethics,
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Journal of Economic Behavior & Organization, 76(1), pp.90-112.
Wang, C.L and Altinay, L., 2012. Social embeddedness, entrepreneurial orientation and firm
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Online
What is Entrepreneurship. 2017. [Online]. Available through:
<http://www.businessnewsdaily.com/2642-entrepreneurship.html>. [Accessed on 23rd
may 2017].