Entrepreneurship and Small Business Management: UK Economy Growth

This report evaluates the impact of small and medium-sized enterprises (SMEs) on the UK's economic development. It interprets data showing an increase in private sector businesses, highlighting the positive influence of small businesses and start-ups on job creation and tax revenue. The report differentiates the contributions of small, medium, and large businesses, noting the local employment generated by small businesses, increased employment and taxes from medium-sized businesses, and foreign investment attracted by large corporations. It concludes that SMEs significantly contribute to local, national, and international economic development within the UK. Desklib provides access to similar reports and study tools for further research.

Entrepreneurship and
Small Business
Management

INTRODUCTION
This report assesses the impact that small and medium sized business organisations have
on the overall development of UK’s economy. Business organisations that are small in size
employ 10-50 different individuals as part of their operations, while businesses that are medium
in size employ around 50-250 distinct individuals within the business organisation.
MAIN BODY
Interpreting and Assessing the Data in Given Table
From the provided table, it is interpreted that the number of overall business
organisations operating in the private sector of UK has increased from 3467 to 4868 showcasing
that the private sector of UK has been booming since 2000, allowing for increased number of
businesses to continue to operate successfully. This is further showcased in the data of individual
sized business organisations, all of whom have also increased within the UK’s private sector,
with micro businesses increasing from 914 establishments to 1155, small businesses increasing
from 163 to 211, medium sized businesses increasing from 27 to 36 and large sized businesses
increasing from 7 to 8. Increased number of business organisations as is evidenced by the table,
tend to have a significant impact on the overall economic development of UK.
Significance of Small business organisations and Start-Ups towards Growth of Social Economy
Small sized business organisations and start-ups have a significantly positive impact on
the overall growth of social economy of UK. This is because small sized businesses and start-ups
immensely contribute towards generation of employment opportunities in the UK, through which
the local UK population can earn their wages and daily living which is imperative towards the
growth of social economy of UK (Storey, 2017). These employees also pay taxes to the UK
government, which also contributes immensely towards growth of social economy of UK.
Differences in Small, Medium and Large Business Organisations towards the UK Economy
Small, medium and large sized business organisations all have different impact on the
UK’s economy. Small sized businesses generate employment opportunities for the locals which

tremendously adds to the UK’s economic development. Medium sized business organisations
employ increased number of individuals all of whom pay financial taxes to the government of
UK adding to its overall economic growth. While large sized business organisations conduct
global level business operations and thus attract foreign investments and increase the overall
foreign exchange available to UK through their international trading operations.
Small Business’s Impacting Different Economic Levels of UK
Small sized business tend to have a significantly positive impact on the different levels of
UK’s economy. As these are small in size, they generate employment opportunities for the local
UK population, which is of paramount importance towards the local economic development. All
the employees of small businesses also pay financial taxes to the government which has a
positive impact on the national economic development of UK (González-Val and Marcén, 2019).
When the operations of small business are specialised, they can also engage in international
trading, which also contributes to international economic development of UK.
CONCLUSION
Through this report, it is concluded that small and medium sized business tend to have a
beneficial influence on the overall growth of the UK’s economy.

REFERENCES
Books and Journals
Storey, D., 2017. Six steps to heaven: Evaluating the impact of public policies to support small
businesses in developed economies. The Blackwell handbook of entrepreneurship,
pp.176-193.
González-Val, R. and Marcén, M., 2019. Agglomeration Economies in Small Cities and
Business: The Impact of the Great Recession in Aragón (Spain). Sustainability. 11(14).
p.3770.