Impact of Entrepreneurship and Small Business Management

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Impact of Micro and Small Businesses

Number of SMEs start ups

Currently there are approximately 5.9 million businesses are running their business activities in the private sector of the United Kingdom. In which these businesses are classified as 5.82 million are small businesses (including 0 to 49 employees), 35600 are medium-sized businesses (including 50 to 249 employees), and rest 7700 are large businesses (including 250 and more than 250 employees). In 2019 businesses under the private sector are increased by 3.5 % in the comparison of 2018.

Number of employing businesses

In these 5.9 million private sector businesses, 1.4 million businesses had employees. On other hand 4.5 million businesses had not any employee (Kedmenec and Strašek, 2017). Small businesses in the United Kingdom are 99.3% part of the overall business population of UK and rest 0.6% are medium-sized and 0.1% large businesses.

Number of employments provided

In the United Kingdom there are large businesses are giving the biggest contribution in employment factor. Currently there are16.6 million employment in Small and Medium enterprises, 13.2 million in small businesses, 3.5 million in medium-sized and lastly huge 10.9 million employment in large type of businesses.

Annual turnover of SMEs

Annual turnover of the SMEs was £2.2 trillion, £1.5 trillion of small businesses, £0.6 trillion of medium-sized and £2.0 trillion of large businesses in the last year (Block and et.al., 2018). This turnover of the all type of businesses is increasing per year and which is too good indication for the UK's economy.

Number of registered SMEs for VAT and PAYE

According to the ONS (Office of National Statistics) over 2.6 million businesses under private sector are registered their particular business for PAYE and VAT, which 45% part of the total business population. Still, 3.2 million are running their business operations without registering for PAYE and VAT. Means 55% businesses are still unregistered. There are 51% partnership businesses were also registered for PAYE and VAT. Get Assignment Examples.Talk to our Experts!

Importance of SMEs

There are SMEs currently giving great contribution in the UK's economy growth. Most of the countries in the world are currently facing huge issue of unemployment in which businesses in the UK are perfectly helping to their own country in terms of economy growth. Large number of the population are completely depends on these businesses for their job purposes. There are large businesses in the United Kingdom are mainly giving jobs to the people at the large scale (Porfírio, Carrilho and Mónico, 016). In which other size businesses are also giving their contribution but not more than large businesses. In the UK still many start-up and small scale businesses are opening on daily basis. So, this factor is also good at reducing unemployment within country.

Government of the United Kingdom specially provide loan facilities with lower interest rates to those entrepreneurs which want looking for start a new business. Many of the entrepreneurs are taking huge advantages from the policies which the local government is running for the businesses which come under SMEs. The UK government completely know the role of these businesses in the country's GDP. These businesses are currently giving great contribution in the UK's GDP as well. From the above statistics it has been observed that these small enterprises are helpful in creating vast range of opportunities which support local communities. By providing employment opportunities and trade operations these small businesses also contributes in GDP of the country. The services provided by these small size organisations also assist large companies by means of collaboration or supply chain networks.

There are such businesses which runs their particular business activities in the local areas of the United Kingdom, like; small cafes, restaurants, vegetable marts etc. are the largest part of the SMEs. These small businesses spread their operations in the local areas only, but given many jobs to the people. These businesses are too favourable in development of local areas within UK, like; small villages and towns (Wang, Thornhill and De Castro, 2017). Some businesses are running their particular business activities in the regional market. Means they are succeeded in expanding their operations in few cities of the United Kingdom. The main vision of these businesses is more expand their business operations in the new market segments of the United Kingdom. There are some businesses under the SMEs in the UK currently providing their products and services to the customers in approximately each market segment of the country. These businesses are generally runs their operations at the national level by providing their services or goods in across the United Kingdom. There are many multinational companies are also estimating in the UK which most helpful in achieve large foreign exchange, because these businesses are generally running their business operations in the international market. So, at these all businesses are too important for the economic growth of the United Kingdom.

The large businesses of the United Kingdom are the most supportive for improve its all over performance in the global market. Currently the UK is one of the richest countries in the world. In which behind this position of the United Kingdom there are SMEs playing great role. There are big international brands in the country called; Tesco, Marks and Spencer etc. also giving huge contribution in the social economic growth of the United Kingdom.

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Successful Entrepreneur

There are many qualities and skills are needed to be a successful entrepreneur in any sector of the business. Here is the internal passion is also too necessary be an effective entrepreneur. Here is discusses the successful entrepreneur named Mr. Richard Branson (Sir Richard Charles Nicholas Branson). He is a top British entrepreneur, businessman and investor. He is very successful in his business career. Mr. Richard is the founder of Virgin Group. From his small record shop to date he is succeeded in build a large business empire in the United Kingdom (Carsrud and et.al., 2017). His Virgin Group is currently providing services in the many countries worldwide. There are his some major characteristics and skills that made him successful are mentioned below;

CHARACTERISTICS

Punctuality: Sir Richard Branson is believed in complete all task on time. He is fully following the punctuality aspect in their personal life. Punctuality is the major requirement to be a successful entrepreneur in any field like sir Branson. With quality of sir Branson, all his employees and management also follow punctuality in their daily life. Currently with this characteristic he is become inspiration of many new entrepreneurs.

Risk Taker: He is very big risk taker in the UK's business sector. Here is risk taking ability is also highly needed to be a successful entrepreneur. He not thinks much about the final results and believes in hard-working. So, his this quality helps him in take risky decisions in their personal life.

Passionate: He is very passionate for their work. Many times he is continuously working for hours without thinking about day or night. Here is passion is the first key to become successful entrepreneur. Sir Branson's mind-set is completely different from those people which believe 9 to 5 work. From business beginning to date his this characteristic made him very successful businessman in the current time.

Open minded: For becoming a successful entrepreneur another essential trait is to be open minded. This characteristic helps entrepreneurs to accept the changes and to grab opportunities which are essential for competitive advantage and long term success.

Constant learning: A successful entrepreneur must also allow constant learning so that professional excellence can be improved. With this characteristics entrepreneurs are able to understand the requirements and suitable strategies essential for their success. They do not hesitate to accept the changes or to learn new things. Order assignment help from our experts!

SKILLS

Creativity Skills: Sir Branson is very creative and innovative. With the support of his creativity skill currently the Virgin group producing many new and exclusive products and services for the customers. He developed his this skill in very productive manner.

Decision-Making Skills: His decision-making skills are also very effective. Every entrepreneur need to improve their decision-making skills in personal life, because there are many situations suddenly rises in the business environment (Beattie, 2016). So, here is decision-making skills become helpful for systematically deal with these situations,

Communication Skills: Sir Branson's communication skills are also very good. He believes in listening. He gives too much priority to listen their employees in their business environment. So, his employees also feel valued by sir Branson and work hard for the Virgin Group. So, this is also inspiration for all new entrepreneur to develop these skills.

Time management: This is one of the most important skill which ensures the success of entrepreneurial ventures. Time management skill assists entrepreneurs to complete their objectives on time as well as ability to prioritise their tasks.

Personality of Entrepreneurs

There are all entrepreneurs are not comes from the same background. All has their own mentality, motivation and mindset. These factors are mainly playing role in growth of the entrepreneur. There are all people in the world are see the situations on basis of self experiences. Here is risk taking ability of people are also not the same. In which people which has good entrepreneurial skills will become highly succeed entrepreneurs than other people. Every entrepreneur when start their business, in this situation that highly need motivation in the initial stage. The entrepreneur need to clear their vision while he or she starting his start-up. Here is positive mindset also playing great role in the success of entrepreneur in future. Each entrepreneur need to make their mindset much effective and positive.

Here is entrepreneur's personality is highly need to be effective in business operations, because it is too hepful in inlfuence somebody (Alharamsheh and Yaseen, 2017). The personality of the entrepreneur is completely based on their upbringing, life style and culture background. In case any entrepreneur is comes from the business family in this situation their entrepreneurship beocme more productive than other entrepreneurs. Family background also playing freat role in the effective entrepreneurship. If entrepreneurs belongs to family which is involved in entrepreneurship activities or the family environment shapes the development and skills of individuals. It also provides motivation, emotional or financial support which helps individuals to develop entrepreneurship activities and values. For instance J.K. Rowling did not have any family background of entrepreneurs but hardships and sufferings of childhood due to poverty gave him a passion and constant motivation to become successful entrepreneurs. Suppose any entrepreneur's father is very successful businessman, in this case that entrepreneur have chance to learn some business tricks from their father. So, this the role of such factorrs like; upbringing, life style and culture background. Here is life style factor is highly inlfuencing the entrepreneurship of any entrepreneur, because if their life style is motivating them for the business practices, then that entrepreneur become highly successful. In other hand suppose any entrepreneur comes from business culture, means their each family member, friend all are doing any business, then that entrepreneur also able to take business knowledge from their relatives. Here is personal motivation is most important thing in become successful entrepreneur in the future. So, these all factors are shaping the personality of entrepreneurs and they totally work on the basis of self-motivation and mindset.

LO3

Role of experience and background in entrepreneurship

Entrepreneurial ventures rely largely upon the individual state of mind of its founders, present behind starting up of a new business. This particular state of mind, covey the personal beliefs and ideas any individual possess which may play a pivotal role in hindering or fostering entrepreneurship.

Positive Experience

A suitable example of a successful entrepreneurial venture which later became a multinational venture capital conglomerate is virgin group founded by Sir Richard Charles Nicholas Branson. Coming from a famous background of lawyers, Sir Richard enjoyed a lavish childhood but instead of taking the family tradition forward he decided to become an entrepreneur at a very young age. As Sir Richard suffered with dyslexia and had poor academic performance he started up his first business venture at the age of 16, a magazine named 'Student' (Richard Branson Biography, 2020). Gaining a much-needed moral support from his mother also a successful entrepreneur, Sir Branson started achieving success on his various accompanying ventures and decides to launch a record label named 'virgin'. Which afterwards, grew to become a large conglomerate controlling more than 400 companies. Lacking any formal education in global business, Sir Branson took it upon himself to grow his business out of passion, learning up from his prior experiences, and keeping forward his interest in the music industry. Behind the success of Sir Branson laid a strong foundation of family support, motivation and optimism. He gradually used his prior work experience to steadily grow his business.

Negative Experience

On one hand where positive experiences provide a much-needed confidence to an entrepreneur, certain bitter experiences of past may also hinder the success of one. As can be seen in the example of the most famous author in present times, J.K. Rowling. Born in England having an unhappy childhood due to a strained relationship with her father and constant sickness of her mother. Rowling found herself battling depression and poverty at the age of 28, with a failed marriage and a year old daughter to look after (The story of JK Rowling, 2020). Rowling who started writing stories at the age of 6, could not manifest her passion of writing and publishing until her earlier 30's. Graduated in arts with french as a major, Rowling had a childhood talent of weaving real life people into her stories. Troubled by her bitter experiences, she was unable to make a name for herself. Facing rejection by various British publishers in the beginning, Rowling was finally successful in publishing her first book under Bloomsbury publications, suggesting the publication house to use only her initials for her first book. She did so in the fear if facing rejection from boys who might reject her books on the basis of having a female writer. Finally, facing instant success in her debut publication, she went on to become an inspiration for budding entrepreneurs herself. And introduced herself as one of the most influential women entrepreneur of all times. The main reason behind her success was an undying conviction and belief in her capabilities, along with the courage to rise up above her bitter experiences. Ask for Academic Writing Service from our experts!

CONCLUSION

It can be concluded that there are many entrepreneurial ventures are exiting in the United Kingdom. These all ventures are interrelating with typology of entrepreneurship. There are also similarities and differences between private and public ventures. In the growth of the social economy of UK, there are small, medium and large size businesses are playing great role. Currently all businesses under private sector are giving high contribution in the UK's GDP and employment. There are various characteristics and skills needed to be a successful entrepreneur like sir Branson. Entrepreneurs' personality is completely depends on their personal motivation, Upbringing, life style and cultural background. These all factors are highly influencing entrepreneurs in both term positively or negatively. In case if any person wants to become an effective and successful entrepreneur in the future, then it needs to develop some entrepreneurial skills and abilities in the personal life.

Read more - Different Types of Leadership

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