Entrepreneurship Report: Impact of SMEs on the UK Economy

This report delves into the multifaceted world of entrepreneurship, examining various types of entrepreneurial ventures, including small businesses, large corporations, start-ups, and social ventures. It explores their similarities and differences, focusing on the role of entrepreneurship in the economic development of the UK. The report analyzes the impact of micro and small businesses on the economy, highlighting their contributions to employment, economic growth, and adaptability. It further explains how small businesses and start-ups contribute to the growth of the social economy, emphasizing job creation and social harmony. The report also assesses the characteristics of successful entrepreneurs and the influence of background and experience on entrepreneurial endeavors. The report uses the example of Posh Nosh Limited, a small business in the UK, to illustrate these concepts.

ENTREPRENERUSHIP
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Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Examine different types of entrepreneurial ventures and explain how they relate to the
typology of entrepreneurship.......................................................................................................3
P2 Explore the similarities and differences between entrepreneurial ventures...........................4
TASK 2............................................................................................................................................5
P3 Assess and interpret relevant data and statistics in your mini-research, to illustrate how
micro and small businesses impact on the economy...................................................................5
P4 Explain how important small businesses and business start –ups will contribute to the
growth of the social economy......................................................................................................6
TASK 3............................................................................................................................................8
P5 Determine the characteristics, traits and skills of successful entrepreneurs, which
differentiate them from other business managers........................................................................8
P6 Assess how aspects of the entrepreneurial personality reflect entrepreneurial motivation
and mind-set.................................................................................................................................9
TASK 4..........................................................................................................................................10
P7 Examine, using relevant examples obtained through your mini-research, how background
and experience can hinder or foster entrepreneurship...............................................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12
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INTRODUCTION
Entrepreneurship is played important role in the growth and development of each and every
country. It can help to provide a large number of jobs in various fields such as marketing,
finance, accounting etc. An entrepreneur is a person who create idea convert in to reality and
make profit out of this (Bridge, and O'Neill,2012). There are various skills and capabilities are
required to operate a small and medium size enterprises such as leadership, management,
planning, organizing, control and so on. It involves various types of risk which is associated with
a business like financial risk, political risk, commercial risk etc. The present report is based on
the Posh Nosh Limited which is a small business unit and operate their business operation in to
the United Kingdom. It is a fast food company which can provide a wide range of food products
to its customers. The purpose of this reports is to understand the role of entrepreneurship in the
economy and the society (Chaston, 2014).
TASK 1
P1 Examine different types of entrepreneurial ventures and explain how they relate to the
typology of entrepreneurship.
Entrepreneurship is a capacity where an individual creates and develop and a business venture
take various risks and transform such SME in to large corporations. There are various types of
entrepreneurial business which having their own size and scope. The aims and objectives of
these organizations are also different. These business units as given below:
Small business ventures: This is one of the common business form which can conduct their
business activities at the lower scale (George, and Bock, 2011). There are various small and
medium size entities such as travel agents, grocery stores, salon etc. The size and scope of these
businesses are quite limited due to lack of funds and expertise. Most of these organizations are
owned and managed by the family and its members. They using various traditional methods in
order to operate their business. The main aim of these units is to sale goods and services and
make profit out of them. The role of these units in the local and national economy having a great
significance.
Large business organization: There are various large corporations which operate their business in
to domestic and international level. It is one of the complex and competitive business form which
is influenced by the various internal and external factors (Hotho, and Champion, 2011.). These
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factors having large impact on the business specially the external one. It can involve political,
social, economic, technological, environmental, and legal. The risk associated with these
business is more as compare to other ventures. The major objectives of such business entities is
to gain market share and profitability of the company which can provide long term growth for
the cited business.
Start-ups venture: This is one of the most critical and complex venture form in the
entrepreneurship (Schaper, 2016). Generally, these business ventures are related with the
innovation and technology. It can help to create new jobs in various sectors such as business
research, finance, accounting, management, information technology, internet based business. The
role of business start-ups in the national economy having too important. It can develop an
innovation culture in the country which can also overcome the dependency of other country.
Therefore, the government is more focused on these business units and provide various facilities
like funding, technical expertise and other important aspects.
Social ventures: There are various organization which are concentrate on the social welfare and
community support. These units can be funded by the large corporate houses or government
authorities. These charitable trust are also called non profitable entities. These organizations can
support to the community in terms of education, poverty reduction, other types of supports
(Sciascia,, Mazzola, Astrachan and Pieper, 2012).
P2 Explore the similarities and differences between entrepreneurial ventures.
There are various types of business ventures which having different aims and objectives. The
size and scope of these organizations also different. Basically, there are two types of ventures
profit making and non-profit. In the profit oriented business entities can be included small and
medium enterprises, large companies, start-ups ventures. On the other hand, the non-profit
making organizations can be including social units. There are various similarities are differences
in these institutions which is descried below:
The similarities in between these units are related with their goals and objectives. Each and every
business venture goals in different but all are required fund in order to operate their operations in
an effective manner. For example, small and medium size business can be funded by the
government authorities and large corporate organization. There are various schemes and
programs which launched by the government (Storey, 2016). Apart from that various corporate
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houses are also provide fund and management expertise to them, so that they can attain their long
term goals and objectives. Whereas SME sector owner can manage its fund from various
financial institutions like domestic and international banks. Large companies also required fund
in order to expand their business. For these they can go for loan or issues shares. The
government is various capital and other resources to the charitable trust so that they can achieve
their long term goals and objectives.
They also having various differences on the basis of size and scope, aims and objectives. The
small and medium business organization main aim is to sale goods and services to its customer
and earn profit. Risk associated with these business is low because they conduct their business
operations in to a limited geographic area. On the other hand, large business organizations risk is
quite large because they operate in more than one country. There are various global factors like
change in the government policies, technology and other aspects can increase the risk of the
business (Shane, 2012). The main objectives of such entities is to capture market share and
increase sales revenue of the company.
TASK 2
P3 Assess and interpret relevant data and statistics in your mini-research, to illustrate how micro
and small businesses impact on the economy.
The role of entrepreneurship on the economic development on the country is too important. It
can help to provide employment opportunity, innovation culture, revenue generation, support
local and national economy. The United Kingdom is one of the leading economy approx. $2.8
trillion. the contribution of SME sectors is too large in tern of revenue and market capitalization.
The role of small and medium enterprises in the economic growth is too significance. They
contribute approx. 92 percent which quite good as compare to other countries. The significance
of SME in the economic growth as given below:
Employment: Entrepreneurship is providing a new jobs opportunity in different fields. The
growth rate of employment in the United Kingdom is 5 percent through small business sectors
(Dahl, and Sorenson, 2012). Historically UK is the industrial based economy which can provide
a large number of jobs from this sector. But after globalization, the businesses are expanding
their operations in to other countries. It can create a serious problem for UK. But due to SME
sectors it can help to overcome the unemployment situation in the economy. They can transform
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their economy in to the knowledge based economy which required highly educated and qualified
workforce to the country. At present there are large number of new jobs create every year which
can be related with the information technology, marker research, and other service based
industry.
Economic growth: This is another advantage of the small business to the country growth. There
are various aspects which can be related with the economy such as growth rate, demand and
supply of goods and services, trading activities, export and import etc. SME sectors can help to
provide new jobs which can leads to increase purchasing power of an individual. It can help to
increase the demand of goods which is most important for the economic growth. The per capita
income of UK is approx. $36000 which is due to the SME sectors in the nation. These sectors
also provide supply of goods to the large companies so that it can support and foster future
growth (Carree, and Thurik, 2010). There are large number of goods which can be imported from
other countries. These business can also overcome the import which can save the money and
reducing the dependency over other nation.
Future growth: After leaving BREXIT, growth rate of UK is going down which having a large
impact on the future and consistent growth. There are various sectors which basically related
with the SME. EU has provided a large market to them so that they can sale their goods and
services. In order to maintain the economic growth of UK, the government and other higher
authorities are focused on the small businesses and promote various programmes which can help
to increase the start-up culture in the country.
Adaptability: Business environment is change over a period of time which required to change in
the process and other aspects of business practices so that they can meet these changes in an
effective manner. Small and medium business units can help to meet those change so that they
can provide tough completion at the global level. For example, at the present era, there are large
number of internet and e business are growing which can help to make them successful in the
future and attain their desired goals and objectives (Geels, 2013).
P4 Explain how important small businesses and business start –ups will contribute to the growth
of the social economy.
The small business contribution in an economy have a large impact. There is a direct relationship
between the jobs and small business. These types of business are creating new ideas and
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developed them in to the business and provide long term success. The main aim for these
business start-ups is to provide high quality products and services and create an ideal image in
the public. They always try to improve their product performance and satisfaction level. Small
business will create a ecosystem which will require a awareness about the importance of the
environment and what can be done to save the depleting nature (Bridge, and O'Neill, 2012).
Motivation through small business helps in creating a social harmony among the people. Social
economy studies the relationship between the economy of the country or any particular region
and the social behaviour. The financial economy is highly depended upon the social economy
because a country cannot be developed without growing at social level. Non profit organization
are the stakeholders who guides people to move at path of success through developing qualities
and researching on the grass root level. Small business companies can be converted into the
social economy sector through setting their goals and target for the economically and socially
backward people.
They also support the society and work for the wellbeing of the community. These are:
Job creation: This is one of the most important significant which is related with the jobs.
Entrepreneurship means designing a business and developing them in to the next level. For this
they required a large number of workforce in the society. They required both skilled and semi-
skilled employees in order to operate their business activities in an effective manner. Apart from
that it can also develop their personal and professional development which cab increase
employability skills and capabilities in the near future (Chaston, 2014).
Poverty reduction: Small and medium businesses also help to overcome the poverty reduction.
Due to increase in the employment situation it can help to increase in the disposable income of
an individual.
Increase standards of living: It can also help to increase the per capita income of the citizen
which can leads to increase the demand of products in the society. It can promote and improve
the standard of living which is a good sign of wealthy community.
Increase tax base: There are large number of SME operate their business in the United Kingdom.
They generate large number of amount which can increase their income. It can provide a scope
of tax generation to the government which can reducing the impart activities. The government
can increase their income which can reinvest in to the various growth and development aspects.
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For example, UK government can spend these incomes in the infrastructure development,
education, health care, research and development etc.
Innovation: Through entrepreneurship skills it can help to create a new culture in the society
which is related with the innovation. The role of innovation and technology in the development
of new business is having a great significance (Hotho, and Champion, 2011).
TASK 3
P5 Determine the characteristics, traits and skills of successful entrepreneurs, which differentiate
them from other business managers.
Entrepreneur is a person who takes initiative to start his own venture, so that he can grab the
opportunity to earn more profits or serve the society. He is a decision maker, who decides what
is needed to be done, how it will be done and when it will be done, to get the most out of the
whole activity. An entrepreneur have some traits which are as follows-
Full of determination: An entrepreneur is required to have clarity of goals and he should be
determined to achieve them at all cost. He should be able to cope up with the pressure of
workload and other challenges which will keep on hindering the path. So an entrepreneur should
not crumble down under any type of pressure (Schaper, 2016).
 Vision: This is what separate an entrepreneur from others. He have a vision, an ability to
spot an opportunity and imagine something different from others. Entrepreneurs keeps on
taking risk for the very vision he have. He is a person who is never satisfied with one
thing, if he is successful in one business and gets idea about something different, he will
go in to that business too.
 Self-belief: Self-belief is important as without it a person will not be able to take risk and
will never be an independent person. An entrepreneur is not just task specific confident
but he is confident about everything they do.
 Rule Breaking: Entrepreneurs are the people who defy all the rules set by the society or
associations. This allows them to explore more opportunities than the tradition
businesses.
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Expert at networking: Entrepreneurs know the importance of having a good network. A network
is a group of people who are connected to entrepreneur in one way or another. This provides
additional knowledge sharing and market understanding to him (Sciascia, Mazzola, Astrachan
and Pieper, 2012).
P6 Assess how aspects of the entrepreneurial personality reflect entrepreneurial motivation and
mind-set.
Entrepreneurship is the own start business with own new idea and innovative methods and
techniques regarding their business. An entrepreneur will be motivate through the internal and
external environment of the business. All entrepreneur wants to give proper satisfaction to
customers and try to build a effective image in the market. An entrepreneur need some
motivation and influence through their family, friends and other persons. So they can start a new
and innovative business so they can manufacture a new innovative and unique products and
goods to customers and they can give proper satisfaction to customers. In this world has many
successful entrepreneurs those are achieve their objectives and goals of their business and their
life those want to achieve them (Storey, 2016). They may be become motivation power for an
entrepreneur through these persons they can take new ideas then re design their ideas and adopt
in their business for developing their business. Entrepreneur are the innovative in the nature they
wants to provide some different products in the market and try to build a brand image their
customers and their market. Entrepreneurship is systematic process in which on person can lead
and manage all activities and works according to the budget and time schedule. So in this world
one of the most entrepreneur is Mr. Mark Zuckerberg. He is the founder and CEO of the
Facebook. Its a social networking site, its help full to all persons to connect each other and
transfer informations with their emotions through the online services. Mr. Mark Zuckerberg is
the successful entrepreneur in the world. He were build a effective image in the whole world and
in the all persons (Shane, 2012). This site provide some technical and social benefits to persons.
He give the motivation to other persons to start a new and innovative business with new
innovative ideas. Entrepreneur has self confidence about their work and their business so they
can give proper satisfaction to them and get feedback through the customers. Entrepreneur are
always try to give proper satisfaction to customers and build a effective image in the their mind.
They help to increase their production of goods and products. And also manage all other
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activities and works in the systematic way. Before doing anything in the business so they think
after that they will decide is it plan and whatever is useful or not for their business development.
Entrepreneur are the main motivational key to other person those are wants to start a new and
own business. On the basis of above mentioned skills reflect in individual and its motivation
level in an effective manner. for instance, long term vision helps to provide a future direction to
the its business for a success in their business. The role of self-belief is too significant for an
entrepreneur and its provide confidence to make decision in an appropriate way. Because, these
decision having large influence on current and future performance. Therefore, a person required
to acquire different types of skills which can be personal and professional and its provide a
consistent growth in their business which is crucial for each and every organization.
TASK 4
P7 Examine, using relevant examples obtained through your mini-research, how background and
experience can hinder or foster entrepreneurship.
Entrepreneurship is a term of businesses where a entrepreneur evaluate a business idea
and start business on that idea. Many persons are there who start there business with new
innovative idea and implement that idea. SME (Small Medium Enterprises) is work with the
entrepreneur. Entrepreneur can start business on the short or medium scale. At present time
government also help SME to improve market growth (Dahl, and Sorenson, 2012). SME is also
helpful to remove unemployment. Government make many policies to motivate entrepreneur like
business loan, place for SME business etc. Government also provide rebate in tax to small or
short enterprises.
Education is a vital part of SME entrepreneurship. Education help to generate new ideas and
innovations. Country education growth affect the SME entrepreneurship. Country literacy ratio
shows the awareness of people. Many people are not aware about to SME. Due to education
many times people are unable to understand about SME and they also don't aware that how to
start SME business. Government have to make programs related to SME and motivate people. At
present time U.K have 99% literacy so U.K have opportunity to make SME batter in their
country (Carree, and Thurik, 2010).
Country culture affect the SME programs. If any entrepreneur want to start their SME
business so first it have to study about the national culture and entrepreneur idea does not
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harm any cultural activity. National culture divide countries in to two parts Individualist
countries and Collectivist countries. Individualist country encourage people to entrepreneur
and provide help to enter in SME.
U.K is the best country in Individualist countries. U.K have big market, batter resources,
literacy and aware people who can manage the SME work. Collectivist Countries prefer
social responsibilities and social work. Collectivist country give new job opportunity to their
entrepreneur.
Government many policies improve SME batter. Government is providing many things people
who want too start SME business. All SME business is helpful to increase economic growth of
country. Government can make policy to courage entrepreneur. If Government make promise to
entrepreneur about risk so people try to start a business. SME very helpful to provide
employment. Many import and export facility provide by government. Government provide fund
to entrepreneur on low interest rate. Government do flexibility in SME rules of regulation (Geels,
2013).
Economic condition of country directly affect the condition of SME entrepreneur.
Economical condition depend on the country growth rate, market condition, government
policies, money inflation and many other factor which have impact on economy of country.
U.K. Economy condition is more batter with other countries. U.K. Have many rules to
support to SME. U.K also provide economical facility to entrepreneur. Customer purchasing
power helpful to improve country economic position. If people have enough money to spent
it is beneficial to money circulation and provide a batter framework to economic condition
of country.
CONCLUSION
As per the above mentioned report it has been concluded that the role of entrepreneurship
provides a consistent growth to the country. The present report discussed about the various types
of entrepreneurship its role in the typology. The differences and similarities in these ventures on
the basis of their size, scope and objectives. It also explained about the significance of small and
medium business enterprise in the social and economic development of the country. As an
entrepreneur is required various skills and traits so that they can attain their desired goals and
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objectives in an effective manner. In the end the report has been concluded that how background
and experience foster the growth of entrepreneurship.
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REFERENCES
Books and journals
Bridge, S. and O'Neill, K., 2012. Understanding enterprise: entrepreneurship and small business.
Palgrave Macmillan.
Chaston, I., 2014. Small business marketing. Palgrave Macmillan.
George, G. and Bock, A.J., 2011. The business model in practice and its implications for
entrepreneurship research. Entrepreneurship theory and practice, 35(1), pp.83-111.
Hotho, S. and Champion, K., 2011. Small businesses in the new creative industries: innovation
as a people management challenge. Management Decision, 49(1), pp.29-54.
Schaper, M. ed., 2016. Making ecopreneurs: developing sustainable entrepreneurship. CRC
Press.
Sciascia, S., Mazzola, P., Astrachan, J.H. and Pieper, T.M., 2012. The role of family ownership
in international entrepreneurship: Exploring nonlinear effects. Small Business
Economics, 38(1), pp.15-31.
Storey, D.J., 2016. Understanding the small business sector. Routledge.
Shane, S., 2012. The importance of angel investing in financing the growth of entrepreneurial
ventures. The Quarterly Journal of Finance. 2(02). p.1250009.
Dahl, M.S. and Sorenson, O., 2012. Home sweet home: Entrepreneurs' location choices and the
performance of their ventures. Management science. 58(6). pp.1059-1071.
Carree, M.A. and Thurik, A.R., 2010. The impact of entrepreneurship on economic growth. In
Handbook of entrepreneurship research (pp. 557-594). Springer New York.
Geels, F.W., 2013. The impact of the financial–economic crisis on sustainability transitions:
Financial investment, governance and public discourse. Environmental Innovation and
Societal Transitions. 6. pp.67-95.
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Bridge,
and O'Neill
2012
Chaston,
., 2014
George,
and Bock,
., 2011
Hotho,
and Champion,
2011
Schaper,
2016
Sciascia,
Mazzola,
Astrachan
and Pieper,
2012
Storey,
2016
Shane,
2012
Dahl,
and Sorenson,
., 2012
Carree,
. and Thurik,
., 2010
Geels,
2013
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