Analysis of Small Business Impact on the UK Economy and Society

This report examines the impact of micro and small businesses on the UK economy, highlighting their significant contributions to job creation, economic growth, and societal development. It emphasizes the role of SMEs in generating employment opportunities and fostering innovation. The report also contrasts large, medium, and small enterprises, showcasing their distinct roles and impacts within the UK economic landscape. Furthermore, it discusses the influence of small businesses at local, regional, and national levels, underscoring their importance in various aspects, including education and community development. The report concludes that small businesses play a crucial role in generating income and improving the standard of living for the people.

Entrepreneurship and Small
Business Management

Introduction
• Present study will discuss impact of micro and small
business on economy.
• It will describe importance of small business.

P3 Impact of the micro and small business
on UK economy
• The impact of micro and small business on UK economy is very good because it helps
in the growth of the GDP.
• In particular SME sector is providing the more jobs from any other sector. It provides
15.2 million jobs to the people. The governments also made relaxation in taxes to
motivate in the new venture. It is also helping the in providing the jobs, offering the
advice and many more. The economy is booming by the contribution of the sector.
• This is helping the society as well because it has no age limit. Any person can start his
business.
• In micro sector also the company are making their full efforts to work on successful
note. Both these sectors are engaged in manufacturing business.

P4 Importance of small business and business
start ups which affect the growth of the social
economy
• Importance of the small business are :Competition – in small business the
competition is more and it motivates to grow them. There are more firms
which are facing serious issues.
• The companies are more effective which helps in the growth of the business.
It is making the great impact on social economy(Saleem, 2017.). Local hiring
– the hiring of the people is more from the local area which are affecting the
productivity of the firm.
• It gives the opportunity to the employees who are from the backward class.
After getting the employment the people are more motivated and the
economy is growing on regular basis.

M2 difference in large, medium and small
enterprises in the context to UK economy.
• In large enterprise – the more money is required to open the large companies. The
person who has the good idea to implement in the business can do work in the that
situation
• Medium – it involves the manufacturing sector which generates employment. There
are more medium enterprises which are encouraged by the government. It increases
the GDP. The chances of the getting successful is not a big deal. It is helpful in
making the upliftment of society(Irene, B. N. 2017.).
• Small – it requires nominal fund. Firms are doing the business which are not on
large scale. These includes like carpets and jewellery making in traditional way.

D2 small business has impact on the different
levels of UK economy
• Small business has impact on local, regional and national level. On local
level there are many things which are made like generation of employment.
The people are more conscious about the work because of this work only
their children are eating the food.
• That money are consumed in the education of the children(Dees 2017). It
will increase the education level of the country. Like in Ghana economy is
not stable there. So there is the problem of the employment as well as
education.
• In regional level small business is doing the great job like in certain region or
place generation of the employment.

CONCLUSION
• It can be concluded that small business helps in generating income and
helps in increasing economy value of country.
• These firms supports in improving life standards of people.

REFERENCES
Mamabolo, and et.al. 2017. Entrepreneurship management skills requirements
in an emerging economy: A South African outlook. The Southern African
Journal of Entrepreneurship and Small Business Management.9(1). pp.1-
10.
Irene, B.N., 2017. Women entrepreneurship in South Africa: Understanding
the role of competencies in business success.The Southern African Journal
of Entrepreneurship and Small Business Management.9(1).pp.1-9.