Entrepreneurship and Small Business Management: UK Economy Report

This report delves into the critical role of Small and Medium Enterprises (SMEs) in the UK economy, evaluating their growth, financial contributions, and impact on national prosperity. It examines the concept of SMEs, their contribution to job creation, GDP growth, and the overall economic landscape, including the effects of Brexit. The report highlights the contributions of SMEs to innovation, standard of living, and employment, emphasizing their importance in driving economic growth and providing opportunities. It further analyses the impact of SMEs in different UK regions and industries, comparing their influence in retail and construction, as well as in other EU countries. The report also explores the entrepreneurial journey, including factors influencing entrepreneurial success, such as family background, skills, and experience, using the example of Nom Popcorn to illustrate these concepts. The analysis underscores the necessity of government support for SMEs to foster their growth, overcome challenges, and enhance their contribution to the UK's economic resilience and global competitiveness.

Entrepreneurship and
Small Business
Management

Contents
TASK 2............................................................................................................................................1
a. Concept of SME and evaluation of growth and financial contribution of small, micro and
medium private organisation to UK Economy ......................................................................1
b. Role of SME's and their contibution to national economy.................................................4
TASK 3............................................................................................................................................7
Background And Experience Influences Entrepreneurs Positively And Negatively.............9
Background and Experience can hinder or foster Entrepreneurship......................................9
OCEAN model.....................................................................................................................10
Maslow’s Pyramid to demonstrate relation between entrepreneurial characteristics and
success..................................................................................................................................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................14

TASK 2
a. Concept of SME and evaluation of growth and financial contribution of small, micro and
medium private organisation to UK Economy
There are wide range of organisation those who perform their operations in within small
and micro level business sector (Ahmad, 2015). This effectively contributes in nation prosperous
growth. Entrepreneurs within this sector generally operate their business functioning within a
small scale size with not more than 50 workers. In addition with this, organisations within small
and micro level business are operated, managed and controlled by sole proprietors. It has been
seen that this sector lead towards offering job opportunities on wide scale that simultaneously
increases per capita income level of individuals. This effectively increase country brand image in
external marketplace. Thus, it is essential for government to offer numerous form of benefits to
those entrepreneurs who comes up with unique and attractive ideas as to effectively increase
national growth prospective. With the significant increase in ratio of small and micro scale
business organisations there is a simultaneous increase in overall GDP and economic growth of
nation. In order to effectively continue this growth, government is required to ensure that they
provide all the related resources and monetary support to these small scale organisations. In this
sector, entrepreneurs those who perform their operations tend towards increasing nation overall
economic growth along with parallel increase in their profitability. In addition with this, it has
been determined that these entrepreneurs effectively engage in the process of providing
satisfactory benefits to individuals. As this sector acts as a major source through which high rate
to employment emerges. This lead towards fulfilling the livelihood needs of individuals.
Entrepreneurs take use of attractive and unique ideas through which they can further able to
provide satisfaction to both government customers.
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Source: Impact on small businesses, 2017
After the situation for Brexit, it has been analysed that there are sudden drastic impact of
nation economic aspects and growth prospective. In addition with this, it also impact on
performance pf small and micro business sector which acts as a major factor that bring decrease
in UK economic growth rate. As small and micro level sector is the major source of economic
growth in UK thus, for this it is essential for UK government to offer full and adequate support
to this sector.
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Along with this, government is required to provide some certain perks and benefist such
as less tariff, easy avalability of raw material in discounted rate and more. This will effectively
lead country towards more prosporous growth. In addition with this, it has been seen that small
and miro level business organisations effectively contributes in per capita income level of an
individual. Further this sector also made their contribution in generating employment
opportunities in UK with the help of which brand image of country in inernational platform also
increased. This lead towards attracting foreign investors that bring prsporous growth in nation
economic aspect. With an increase in per capita income UK measured 14.8 % growth in their
economic aspects. In addition with this small and medium organisations contributes up to 23.4 %
in overall UK employment opportunity. With the help of this country is leading towards more
prominent growth prospective.
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Illustration1: 1: Number of UK businesses in the private sector by number of employees (2000-
2018)

b. Role of SME's and their contibution to national economy
Small and medium scale business organisation are backbone of UK economy that drive
nation towards more growth and new opportunities. These organisational sector effectively
contributes towards job creating opportunities that encourage fresh ideas. Thus, it is important
for Government of United Kingdom to encourage and flourish this sector. By providing
numerous form of benefits government can effectively able to push boundries of small scale
organisations that further lead towards sharpining business process of small and micro scale
business organisations. This country is ascertained to be a home to several small business and
ventures which aid the country to attain stability and inflate the economic growth rates year by
year. Such business entities contribute to growth of UK as follows:-
Standard of living: The primary significance of SMEs is that they upgrade the living
standards of people of a country by giving them employment opportunities and encouraging
them to work in local country rather than leaving the nation to work somewhere else. By
provision of such work opportunities, small businesses and ventures ensure the growth of
economy of United Kingdom.
Innovation: Small medium enterprise may found as the biggest innovators and they
utilise the resources efficiency in order to generate sales and profit. They also support the
economy of UK and provide the best services as per the taste and preferences of customers.
Small and micro level business organisations take advantage of innovation and innovate
approach as to satisfy needs and demands of customer by fulfilling their wishes in best effective
and in unique manner.
Low overhead : As the company have small operations so they have less overhead on
company. They have limited amount of operation, low coat product and limited services in their
respective field. This help them to generate profit with adequate resources and increase the GPD
of the country in best possible way.
Employment to local people: It is one of of the important feature of small scale
business. They provide employment to local community who are struggling to find new jobs in
the market of UK. They provide jobs to skilled as well as semi-skilled people and assist them
with training for better result. Thus, by providing employment opportunities small and mirco
level business organisations can effectively contributes in per capita income level of individuals.
This lead towards increase in their living standards.
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Source: Statista 2019
Small and micro level business organisation plays an key essential and important role in
UK economy. These entreprises effectively contributes in nation prosperity while involving
numerous stakeholders. thus, it become essential for governemnt of UK to steer the growth of
these entities by providing them financial as well as other form of assitance. As by supporting
these SMEs and mirco level business organisations as overall contribution of these sector
touches upto annual turnover of amount 1.8 Euro trillion. Thus, it is essential for government to
offer financial support to flourish growth of this sector. With the large contribution small and
medium scale business organisations drive UK economy towards wealth creation and
productivity. Thus, by providing more opportunities to puruse business operations this sector can
further attract large base of potential invenstors that further lead towards strengthening global
brand image of country.
a) Impact of SME’s for two UK regions
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Illustration 2: Average profit made by small and medium enterprises

As per according to the report of department of Business, Energy & Industrial Strategy
figures it has been identified that London has 1,563 businesses for every 10,000 adult residents.
While The West Midlands is impressively lead towards growh at a rate of 9% change a year,
followed by Scotland 7% and Yorkshire & Humber 7%.
Impact of SME’s for the UK utilising two different industries
Small Scale Business organisation effectively impacts on two different types of industries
namely retail and contruction. It has been evaluated that 70% of SME with all acorss UK are
registered as micro business. While the construction industry contributed upto 20% of UK's
SMEs sector (SMEs working in the construction sector within the UK. 2019). While retailing
sector is termed as an business organisation that mainly involve selling product in a direct way to
customers. Retailing sector mainly include the logistics sector, the wholesale sector, the
manufacturing sector. It mainly contributed upto £92.8 billion in 2017 economic output. In
addition with this The economic output of the retail sector (in terms of Gross Value Added,
GVA, which is similar to GDP) in 2017 was £92.8 billion, which was 5.0% of the UK’s total
GVA.
c) Impact of SME's for two EU countries
It has been seen that small and medium scale business organisation is one of the most
important segment in French economy (Hoogendoorn, 2016). As in the year it has been
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Illustration 3: Economic contribution of the retail
sector

evalauted that there were estimated amount of 2.96 million SMEs within France that employed 9
million and more than individuals. Thus, as per the above mentioned discussions it has been
analysed that small and mirco scale industry is by far is one of the fastest and leaing growing
sector within UK that comprise mainly 74% business in within service industry. While in within
constructions industry this sector accounted for 18% sector in all UK businesses. Half of the
revenue in UK is generated by small and micro level industry that further provide large sum of
employment opportunities. With the increase in growth of SMEs it has been evalauted that there
is a maginificiant increase in small and micro business companies.
As per according to the stats it has been highlighted that this industry boost up the growth
performance of UK. There are many challenges that is being faced by SMEs that include
allocation of adequate amount of fund. For this government is required to provide relaxation in
any form of loan that are received by small businesses. With the help of government support
these organisations can effectively able to thrive that further aid nation to increase their growth
rate. Thus, with the proper assitance of government small and micro level business organisations
can effectively able to increase their growth prospective rate by providing employment
opportunities on large scale. This growth nit only benefit nation to increase their international
market reputation in global scale but also aid individuals to increase their standard of living by
providing them job opportunities. Thus, government is required to consider all these factors that
are contributed by small and micro level business organisations and further take care of their
required needs and requirements as to effectively encourage them towards more development
prospects. With the help of this, UK can overcome itself with the adverse situation of Brexit and
can further increase their growth towards betterment.
TASK 3
Entrepreneur is an individual who initiate business idea in a unique and innovative way
with risk as to attain sustanable success (Fayolle, Verzat and Wapshott, 2016). Entrepreneur
effectively allocate diferent sources of funds as to make investment within their new venture in
order to gain profitability and long term sustanability. Entrepreneur take risk as to initiate a
business venture as to satisfy needs and demands of large base of population. It has been
analysed that entrepreneurial sucess mainly depend upon family support. Mentioned below there
are some certain factors that may directly and indirectly impact on entrepreneur skills and ability:
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In context with Steph Croft- Simon, Nom Popcorn founder that was established in the
year 2015. Nom Popcorn was the first of its kind organic popcorn brand within UK.
Entrepreneur innovated this business idea from the influence of her health issue. Thus, for this
she move towards changing snaking habit naturally. In order to initiate this business idea she
face number of difficulties. All these hurdles acts as an element that made her more confident
towards accomplishing her goal.Family background, Success is mainly depend upon individual
skill and ability with the help of which person can effectively lead towards developmental
growth. Family background is also the important prospect that can impact on entrepreneur as to
accomplish their objectives. Skill and knowledge that was inherited by family also aid
entrepreneur to increase their capabilities to perform objectives in more better way. In context
with Steph Croft-Simon, who belongs to a well reputed family within which her parents
supported her in a well effective manner and further encourages her to initiate own business and
find more growth opportunities. Her parents were mesmerised by her ideas and thoughts in an
attractive way. Thus, with the help of adequate support of her family Simon starts her business
venture. Education, Education acts as a basic factor that lead towards influencing entrepreneur
skill (Burrows, 2015). As the knowledge and capabilities that an entrepreneur gained through
education significantly influence them towards more growth prospectives. In addition with this,
with the adequate sum of knowledge entrepreneur can further able to overcome from many
hurdle and barriers. Along with this, with the help of education entrepreneur can not only able to
overcome future risk aspects but also lead towards wide range of growth opportunities. In
context with, Steph Croft-Simon, who is student in field of science and studied sociology at
Bristol University. She later went to school as to teach sociology subject. With the passion and
education in particular field Simon lead her passion to attain successful growth in particular
field. Financial statusFinance acts as an one of the most important aspect. With the help of well
effective financial status entrepreneur can effectively able to accomplish their business
objectives. This lead them towards attainment of goals and objectives in more defined manner.
In context with an entrepreneur finance aid in initiating business in more defined way. In regard
with Steph-Croft- Simon with the assistance of family financial support she further lead towards
accomplishing her objectives in more define manner.
1. Difference between an entrepreneur and a manager
Basis Successful Entrepreneurs Business Managers
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Focus A successful entrepreneur is focused
towards initiating business in a well
effective way.
Main focus of a business manager is
towards conducting business
operations.
Status Entrepreneur acts as a firm owner. Manager only acts as an employee
within an organisation.
Motivation In this they, operate their operations by
treating motivation as their motivation
factor. With the help of this they
effectively perform their operations.
They conduct their operations in a
well effective manner in a
organisation that acts a motivating
factor for them.
Background And Experience Influences Entrepreneurs Positively And Negatively
Background and experience both acts in positive as well as in negative manner. As it may
act in negative and positive manner. In context with the scenario of successful entrepreneur,
background and experience plays an key essential role. With the help of this entrepreneur can
effectively able to choose their particular field of study. In addition with this, in the present case
it has been seen that with the interest in field of science Steph Croft-Simon effectively able to
select her particular interested carrier. Thus, it is certain that background and experience both
acts as an one of the strongest element with the help of which entrepreneur can able to influence
towards their particular field of study.
Background and Experience can hinder or foster Entrepreneurship
There are many instances that effectively states background and experience importance
within an individual (Belz and Binder, 2017). It reflects different types of elements that can
frame and destroy a person. In context with entrepreneurship it has been seen that both
background and experience can hinder and foster entrepreneur. Mentioned below some of the
certain factors are defined below Level of Education: It plays a vital role in analysing the person
capabilities for the development of an organisation. Having enough knowledge of a certain
subject makes the work easier. In the case of Steph Croft-Simon foray in the science sector
helped her in the establishment of such a vast organisation. This feature proved as a foster for
her. Nationality: Nation and culture plays a major role in establishing the mindset of a person.
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