Entrepreneurship and Small Business Management
Title: Explain how and why Government can support and increase enterprise ventures in the UK.
1. Introduction 2
2.Enterprise ventures 3
3. Micro, small and medium-sized enterprises (SMEs) 3
4.The importance of SMEs to the Economy 3
4.1 stimulating innovation 4
4.2 Increasing competition 5
4.3 Job creation 6
5 Barriers of business success 7
5.1 The internal capacity and capability to grow. 8
5.1.1Skill and employing people 9
5.2The external environment 10
5.2.1Access to finance 11
6. Government support and Interventions 12
7. Conclusion 16
8. Reference 17
Small and medium-sized enterprises (SMEs) have played a major role in European economy; it’s a key source of jobs, business dynamism and innovation. (Liikanen 2004) According to the OECD (2005) research there are more than 95% of firms are SMEs, which provide more than two-thirds of total jobs in the private sector. SMEs have specific strengths and weaknesses that may require special policy response. As new technologies and globalisation reduce the important of economic of scale in many activities, the potential contribution of SMEs is raised. However, SMEs has still facing many traditional problems, lack of financing, low productivity, constrained managerial capabilities, lack of regulatory and difficulties in exploiting technology, which has more notable in a globalised and technology-driven environment. This report wills mainly explain how and why Government should support and increase enterprise ventures, and all the information is based on the UK economy.
For the understanding of the term ‘enterprise ventures’, have not found any definition，this report is defined as firms, which are just starting or have an ambition to grow，and often is Micro, small and medium-sized enterprises. 3. Micro, small and medium-sized enterprises (SMEs)
In 2011, the European Commission has defined SMEs at three different categories, micro-enterprises, small-enterprises and medium-enterprises, which employ fewer than 10, 50 and 250 employees respectively. SMEs is not only made up of enterprises which employ fewer than 250 person, but also required that the annual turnover is not exceeding 50 million euro. 4.The importance of SMEs to the Economy
The importance of SMEs is reflected in the Government growth agenda. The BIS business plan shows “Boost enterprise and make this the decade of the entrepreneur”. (BIS，2012) This will be achieved by helping SMEs start and thrive through better business support, improved access to finance and stronge...