Entrepreneurship and Small Business: SME's Impact on UK Economy

This report provides a detailed analysis of entrepreneurship and small business management, focusing on the impact of Small and Medium Enterprises (SMEs) on the UK economy. It examines different types of entrepreneurial ventures, including social and lifestyle entrepreneurship, highlighting their similarities and differences. The report interprets relevant data and statistics to assess the contribution of SMEs to the UK economy, emphasizing their role in job creation and revenue generation. It also explores the significance of small business enterprises and startups in the growth of the social economy in the UK, considering the effects of events like Brexit. Furthermore, the assignment identifies the characteristics, traits, and skills of successful entrepreneurs, using case studies of Dalian Wanda Group and Infosys to illustrate entrepreneurial motivation and mindset. Finally, the report discusses environmental factors that either foster or hinder entrepreneurship, providing a comprehensive overview of the entrepreneurial landscape.

ENTREPRENEURSHIP
AND
SMALL BUSINESS
MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
Main Body.......................................................................................................................................1
P.1. Examine different types of entrepreneurial ventures and explain how they relate to the
typology of entrepreneurial.........................................................................................................1
P.2. Explain the similarities and differences between social entrepreneurship and lifestyle
entrepreneurship..........................................................................................................................2
P.3. Interpret and assess relevant data and statistic to how SME's impact on the UK economy 3
P4 Explanation about the significance of small business enterprise and business start up to the
growth of social economy in the UK..........................................................................................4
P5 Determination about the characteristics and traits of skills of the two entrepreneur
associated with case studies........................................................................................................4
P6 how aspects of the entrepreneurial personality of both entrepreneurs reflect their
entrepreneurial motivation and mindset......................................................................................6
P7 Different environments/environmental factors that foster or.................................................7
hinder entrepreneurship..............................................................................................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Entrepreneurship is an activity of setting up a business or business taking on financial
risk in the hope of profit. The people who start and create the business is known as entrepreneur
and he/she has capability and willingness to develop, organize and manage the business unit
along with any of its risk order to make a profit. The current report provides the detail knowledge
and understanding about the entrepreneurship activities of Dalian Wanda Group and Infosys
company (Fayolle and Liñán, 2014). Similarity and differences between social entrepreneurship
and life style entrepreneurship has been systematically addressed in this report. Furthermore,
significance of the small business enterprise and business start up to the growth of the social
economy in the UK has been also discussed in this present report. This assignment also defines
the characteristics, traits and skill of the two entrepreneurs with respect of different case studies.
Main Body
P.1. Examine different types of entrepreneurial ventures and explain how they relate to the
typology of entrepreneurial
An entrepreneur is a person of group of business activities, they have potential to take
risk at high level and bring the business at successful way efficiently. An entrepreneur plays a
vital function by which contribute the economic growth of the country and make generation of
revenue from the market in efficient way (Goffee and Scase, 2015). They are related to different
kinds of typology in the business environment in effectively and needed to managed efficiently
within their industry effectively. Varied of entrepreneurs are presented here in the country which
works for several kinds of purpose in the industry properly. Each of them is different and unique
from each other in the industry efficiently.
Different types of entrepreneurial venture as following:
Small businesses' entrepreneur: Small business venture are mad of several kinds of
ideas and small innovative thoughts in the society. There are variety of small business enterprises
are working in the country and generating profitability effectively (Stokes, Wilson and Wilson,
2010). Entrepreneurial exercise allow businessman to execute their innovative activities in order
to create economic growth efficiently and resolve communities issues properly within the
business environment efficiently. Small business venture in the country such as, small retailers,
barbers, electricians, stationary etc.
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Scalable start-up entrepreneurial venture: Scalable start-ups are those which are newly
emerged in the business industry effectively. They have major goals of making changes in the
society by introducing new ideas and technological changes in the society which make
contribution to large scale of sustainable development in the society efficiently. They furnish
different kinds of unique product and services according to demands of communities effectively.
Social entrepreneurial venture: Social entrepreneurial deliver some effective product
and services according to social needs and demands of transformation in various sector such as
educational, healthcare, environmental and enterprise sector, and some social development and
welfare plans in the community effectively. They provide services in order to social welfare in
the community efficiently.
P.2. Explain the similarities and differences between social entrepreneurship and lifestyle
entrepreneurship
Similarity and differences
Social entrepreneurship Lifestyle entrepreneurship
Social entrepreneurship make major focus on
appropriate developing and welfare of society
by furnishing efficient services and innovative
products which assist them to make proper
evolution.
Social entrepreneurs works in the industry in
respect to generating profitability and help the
needed persons in the communities (Malhotra
and Temponi, 2010).
Social venture care about the things which is
investors in the organisation, they are
interested to attract investor to make
investment in some essential parts of the firm
Lifestyle entrepreneur making efforts in order
to furnishing innovative services to
communities to resolve their several issues in
the society in more efficient form.
Lifestyle entrepreneur works in the industry
not for generating profitability, they work only
for creating positive image in the industry by
doing great job in the industry efficiently.
Lifestyle venture do not want to give answer to
their investor in the industry about to
company's growth in the market and they start
a business that does not have initial
profitability in the company.
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in terms of proper improvement in
functionality of the enterprise in the industry
effectively.
They work majorly for furnishing efficient and
innovative product and services to needed
persons in the communities effectively and not
work for profitability generation.
Social entrepreneur earn money and give
facilities to society development and welfare in
order to sustain community people more
efficiently.
Lifestyle enterprise works for provision of new
product and services in the society according to
demand and necessity of people in the
communities and fulfil efficiently (Burns,
2016).
Lifestyle businessman works for become reach
in the industry and get and give more time
themselves for appropriate development of
themselves.
P.3. Interpret and assess relevant data and statistic to how SME's impact on the UK economy
Small business is backbone of UK economy and they make great contribution for
developing the country 's economy in efficient form. They are furnishing efficient and innovative
product and services at small level in the country and encouraging competition at great level so
that it assists to increase growth rate of the country's economy effectively (Storey, 2016). In case
of 2014 data about small entrepreneurship, there were 5.2 million small business is operating in
the country effectively and creating high level of competition in the industry at effective rate.
Thus, it is called that they are economical powerhouse of the country sufficiently within the
business environment of the country. The relevant data about SME shows that, the SME
businesses which has fewer than 10 people creating job in the industry effectively which is 33%
and 19% of turnover, in the business in more effectively and they have created 15.2 million jobs
from the last few years. Within micro businesses less than 10 employees are making more
revenue in the market and make supports for appropriate development of their issues in more
effective form.
Table 1 : Total Entrepreneur in United Kingdom 2016-2017
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Country Total Entrepreneur %SME
United Kingdom 5.7 million 94.6
From the above table, it could be said that, in UK. 5.7 million of SME is operating
effectively within the industry and they are making more effective generation of profitability and
revenue from the small industrial market in the country appropriately. Hence, it could be said
that, SME's in the UK is generating more revenue in the market and making efficient
contribution in order to economic growth of the country properly.
P4 Explanation about the significance of small business enterprise and business start up to the
growth of social economy in the UK
In the country, small business enterprise are those organizations and venture which
provide various kind of benefits to the nation as well as economy. While united kingdom exit
from the European union then it is known as Brexit. Due to this change, several sectors of the
country is positively influenced such as economic, employment, education etc (Hmieleski, Carr
and Baron, 2015). However, financial condition and other components of the country affected at
various level. From the research it has been identified that due to the brexit company have gain
the opportunity for starting up new business and expanding small level organization at high
level. This small business enterprise assists to the country in increasing the revenue and
profitability Due to this social economy can become powerful and strong.
One major significance of the small business enterprise and business start up in the social
economy is related to the employment. As with help of this small business enterprise within the
country, citizens have opportunity to get job within organization. It influences on GDP
information and government strategies to get profited identified with critical region for boosting
development. In agreement to this, embracing creative thoughts and strategies prompt grow little
and medium size substances too openings are developed for setting up new entrepreneurial
endeavors. It builds quality too decreases shortcomings of country for financial dependability of
nation. It interrelates with different parts of country, for example, work, creation, fund and
tourism. In any case, request and supply including administration characteristics of country get
affected. It is interlinked with different developments to upgrade proficiency.
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P5 Determination about the characteristics and traits of skills of the two entrepreneur associated
with case studies
In order to start the small business enterprise within the country, entrepreneur plays a
very crucial role who initiate and start the business. Entrepreneur initiates the business, takes the
risk and develop strategy of business. He/she accepts challenges and risk for the business and
start it for achieve its objective. They use their creative idea and thoughts to carry out all
business activities and function within the small business enterprise. In the context of Infosys
which is an Indian organization, Indian entrepreneur Nandan have several kind o the roles and
responsibility to start the business and carry out its all activities and function. Following are
some major role of the Nandan toward Infosys- Take high risk- This is one of the significant characteristic in the entrepreneur by which
he/she can take risk regarding business. With help of this trait within the enterprenuer
he/she can take the risk related to the high level of business operation. He/she must have
ability to face challenges regarding the high level of task related to business. Positive attitude- A successful entrepreneur must have quality of positive attitude
because he/she is a person who carry out all business activities, function and takes major
decision of business (Mudalige, Ismail and Malek, 2016). Other subordinates and team
member within company also influences from enterprise so he/she must have full
confidence as well as positive attitude through which he/she can handle several issues
and problem within corporation. Self confidence- This is another real normal for the business visionary by which he/she
can step up with regards to the business exercises (Schlaegel and Koenig, 2014). By this
expertise and quality, business person can adequately achieve the task and errand of the
association. Nandan have this trademark keeping in mind the end goal to survive their
organizations in the aggressive market.
 Effective leadership and communication skill- This is one of the most essential skill in
the entrepreneur within small business enterprise by which he/she can easily handle
business in effective and efficient manner (Zhang, Song and Zhong, 2016). With help of
effective leadership entrepreneur can lead, direct, motivate and influence subordinates
and employees within organization. On the other hand with help of communication skill
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entrepreneur can interact with their and inform them bout decision, practices and strategy
of business in more effective and efficient manner.
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P6 how aspects of the entrepreneurial personality of both entrepreneurs reflect their
entrepreneurial motivation and mindset
Personality of an entrepreneur considered positive impact to attain desired results and
outcomes as well. In this way, each entrepreneur perform different skills and characteristics that
is based on different life style, performance, etc. In addition to this, it also encourages them to
bring several innovative ideas and opinion to attain more successful results at workplace. It
makes positive results for mindset and set objectives to attain more significant activities at
workplace. Entrepreneurship requires effective personality which influence to other people to set
and attain desired targets (Curran and Storey, 2016). In this way, following are certain dimension
in OCEAN included that assists to make significant results at workplace. They are as follows: Openness: In respect to involve element of openness, it has been considered that every
entrepreneur need to involve culture, originality which increase different experience of
individual. It also considered effective results in the business environment that make
creativity at workplace. Wang Jialin in Dalian Wanda considered his more efforts and
develop estate in the company. They determine their functions and operations as the
world largest film theatres operator.
 Consolidation: Further, this element helps to accomplish and develop tendency which
assists to make attainment in the overall goals and targets in new areas of the world. In
respect to develop more systematic work performance, it creates more successful
program in the business environment (Sahut and Peris-Ortiz, 2014). After China, Wang
also considered his operations in different areas of the world. In this way, he had decided
to work on the CCTV.
 Extroversion: In order to includes extroversion it has been seen that energy considered
positive emotions to attain desired results at workplace. It helps to focus on the creative
consideration that increases profitability and systematic work performance as well.
 Accommodation: In addition to this, tendency also involve to compassionate instead of
suspicious. Therefore, it also impacts positive to make systematic work performance in
the environment. It also develops more creativity at workplace that assists to look
towards the systematic work performances (Curran and Storey, 2016).
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 Neuroticism: It assists to develop experience and overcome the issues with emotions. As
results, activities developed to make sure that desired goals and operations will be
considered in systematic manner.
P7 Different environments/environmental factors that foster or
hinder entrepreneurship
In respect to considered the research for entrepreneurs development, it has been seen
there are different factors exist that implement to make successful results. It has been seen that
reward and drawbacks mainly create impact on the entrepreneurship program (Setianto, Fathoni
and Warso, 2016). In this way, crucial skills and capabilities helps to compete with other
enterprises. There are several factors exist that impact on the fostering entrepreneurship which
assists to attain desired results and outcomes. They are as follows: Education: Education of entrepreneur mainly create impact because in this way, they
increase their skills and development program at workplace. In this consideration, it has
been seen that high level of education needed to perform several goals and objectives in
the business environment. As results, it increases performance level and show positive
impact as well (Sahut and Peris-Ortiz, 2014). Family background: Family background also impact to foster the entrepreneurship. In
this way, skills and development activities assists to implement creative results at
workplace. In addition to this, to look towards the present case study it has been seen that
Nandan is an Indian entrepreneur who develop technology and make themselves global
leader. He decided to work on the innovative characteristics that assists to attain more
significant results at workplace. Along with this, Wang is also committed to string
background in all over the market which assists to make proper concentration in the
business (Henrekson and Sanandaji, 2014).
 Experience: Further, experience of a person also impact to make systematic work
performance in the business. In this regard, Nandan has high and innovative knowledge
to work as independent entrepreneur. It will also assist to take several tasks in the
business through entrepreneur work in systematic manner. Along with this, Nilekani
started his career with several kinds of computer system in all over the India. Therefore,
it assists to make more profits and outcomes in the environment.
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CONCLUSION
By this entire report it has been summarized that the small business enterprise plays a
very crucial role within the country for increasing revenue and national income. By this
entrepreneurship business, citizen have opportunity of employment. It has been also concluded
from this report that entrepreneur plays a very crucial role who initiate and start the business.
Entrepreneur initiates the business, takes the risk and develop strategy of business.
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REFERENCES
Books and Journals
Fayolle, A. and Liñán, F., 2014. The future of research on entrepreneurial intentions. Journal of
Business Research. 5(5). pp.663-666.
Hmieleski, K.M., Carr, J.C. and Baron, R.A., 2015. Integrating discovery and creation
perspectives of entrepreneurial action: the relative roles of founding CEO human capital,
social capital, and psychological capital in contexts of risk versus uncertainty. Strategic
Entrepreneurship Journal. 45(4). pp.289-312.
Mudalige, D., Ismail, N.A. and Malek, M.A., 2016. Exploratory Study on Relationship between
Entrepreneur Characteristics and Dynamic Capabilities in Export SMES. Paradigm.
78(2). pp.113-130.
Schlaegel, C. and Koenig, M., 2014. Determinants of entrepreneurial intent: a meta‐analytic test
and integration of competing models. Entrepreneurship Theory and Practice. 5(2).
pp.291-332.
Zhang, X.M., Song, Z.L. and Zhong, Z., 2016. Does “small bank advantage” really exist?
Evidence from China. International Review of Economics & Finance. 8(7). pp.368-384.
Henrekson, M. and Sanandaji, T., 2014. Small business activity does not measure
entrepreneurship. Proceedings of the National Academy of Sciences, 111(5), pp.1760-
1765.
Sahut, J.M. and Peris-Ortiz, M., 2014. Small business, innovation, and entrepreneurship. Small
Business Economics, 42(4), pp.663-668.
Setianto, A., Fathoni, A. and Warso, M.M., 2016. ANALYSIS UNDERSTANDING
ENTREPRENEURSHIP, KNOWLEDGE OF MARKETING, WORK EXPERIENCE,
AND IMPACT ON SMALL BUSINESS IMPROVEMENT IN VILLAGE BEJI.
Journal of Management, 2(2).
Curran, J. and Storey, D.J. eds., 2016. Small firms in urban and rural locations. Routledge.
Storey, D. J., 2016. Understanding the small business sector. Routledge.
Burns, P., 2016. Entrepreneurship and small business. Palgrave Macmillan Limited.
Malhotra, R. and Temponi, C., 2010. Critical decisions for ERP integration: Small business
issues. International Journal of Information Management. 30. 1. pp. 28-37.
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