Unit 9

Entrepreneurship and Small Business

Management

SAMPLE WORK

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 Table of Contents

Introduction...........................................................................................................................3
Task 1........................................................................................................................................4

Task 2 Slides (P5, P6 and P7)..........................................................................................25

Conclusion................................................................................................................................43

Reference List......................................................................................................................44

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Introduction

Business entrepreneurship can be referred to as the capability along with the

willingness of developing, organizing as well as managing a venture of business
in conjunction with all the incurred risks, for making a profit. Starting up a new
business can be referred as the most common type of entrepreneurship. On the
other hand, small business can be referred as an independently owned as well as
operated organization, the size of which is limited and depends on the industry
that it belongs to for generation of revenue. Small business management can be
referred to as a process that is used by the entrepreneurs at the time of carrying
out the business operations. The entrepreneurs while managing the small
businesses frequently require possessing all kinds of knowledge, expertise
connected to topics of business. Entrepreneurship contributes to the
development of the economy by: meeting the needs of the population, producing
goods and providing services, creating jobs, paying taxes, contributing creatively
to innovation, developing the competitive environment, thus contributing to
lowering prices.

This study will explore the latest condition of entrepreneurial activities in the
Borough of Watford South Oxhey.

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 From: XXXXXXX
To: XXXXXXXXXXXXXXXXX
Sub:XXXXXXXXXXXXXXX.
An important role in the economic activity and the development of a country, any
Borough like a South Oxhey, plays entrepreneurship. In order to see the impact
on South Oxhey council development, it is necessary to analyse its
entrepreneurship and development capabilities.

Task 1

a) Critically examining the scope, development and growth of entrepreneurial

ventures (Various kinds of businesses) in your borough. You can develop
your answer by considering various kinds of entrepreneurial ventures
within the private and public sector and examining their similarities and
differences.

Introduction

This report will explore as well as illustrate the variety of venture kinds, which can
be considered as entrepreneurial in the Borough of Watford, South Oxhey. In
addition to that, the report will also measure the impact of small businesses on
the economic conditions of the area.

Entrepreneurs are people who identify problems existing in a branch of the

economy, using existing opportunities, take the risk of registering a business or
more on their own, using their own resources as money, personnel, capabilities,
trying to meet these needs by producing new goods and services. (Ulearn, 2019)

Example of Entrepreneurs in the South Oxhey borough:

Sole trader – shops like: fast-food - Boston, Rustic, Sunrise – haircut, barber and
nail, Turkish shop “Waites” - fruits, vegetables and groceries, Poppy’s hair and
nail salon, Michael’s Dry Cleaners- Dry cleaners Alterations & Laundry Services,
Adams Ophthalmic Opticians.

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Public Limited Company - Tesco, Cooperative-Food, The Cooperative funeral
care, Nisa local, like a Tesco, Construction – Countryside.
Partnership, Self-employers – persons who works in construction, the barbers
and hairdresser.
Private Limited Companies like shops, pharmacies, Kingshill bakery, Dental
surgery, Tasty kebab.

Intrapreneurs is a person who works in a large enterprise who knows a field well
and is empowered by the management of the enterprise to develop this field. This
person takes a responsibility in the company to realise some job and he has the
freedom to use the organisation resources. He also uses innovation to solve
different problems but acts at the risk of the enterprise. (Ulearn, 2019)

If we compare entrepreneurs and intrapreneurs, we can see the following:

Entrepreneurs are people who are doing something new to produce or perform
services on their own;
- uses own or borrowed resources (financial, human capital, machinery);
- activates at your own risk;
- pay taxes;
- creates jobs.

Intrapreneurs are people who are doing something new in an enterprise, but:

- on behalf of the enterprise they work in, usually large enterprises;

- do not pay taxes for profit;
- through the created innovations, they can create new jobs,
- the risk involved in the activity of a company is no affect directly the
intrapreneurs but affect the organization.

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P1: Examine different types of entrepreneurial ventures and explain how
they relate to the typology of entrepreneurship.

An individual establishing and operating a small business along with presuming

all kinds of risks as well as rewards, which can be incurred from the business,
can be referred as an entrepreneur (Ebert, 2014). The entrepreneurial ventures
can be categorized into different kinds, some of which are discussed as follows:

Venture of High Growth: These kinds of entrepreneurial ventures are

undertaken with the aim of profit maximization along with growth and
development expansion of the business (Grilli and Murtinu, 2014). For this
purpose, the entrepreneurs attract different investors to obtain funding for
expanding the business. The scope and objective of these kinds of businesses is
to concentrate on innovation for adding fresh product and service lines in order to
expand the business and enter new markets. This is done by environment
scanning. It is the process of collecting data regarding various events and the
relationship of the company with its internal as well as external environment
(Wheelen et al., 2017). The high growth ventures along with producing new
product and service lines, helps the overall industry in to grow and develop.
These ventures, such Tesco, Countryside Constructions Inc – construction
organization and others have made positive financial contribution towards the
Borough of Watford South Oxhey.

The four M’s of High Growth Ventures are as follows:

Men: The high growth ventures require fulfilling various types of job roles, such
as management, marketing and sales, finance and accounting, operations and
many others. Therefore, it will require a big workforce.

Material: The resources required by these kinds of ventures depend on the

nature of the company.

Money: The budget of these kinds of business is high. Therefore, these ventures
take the assistance from investors for funding.

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Machines: Various kinds of machines are required by the high growth ventures,
such as various types of technologies, software, along with vehicles for
transportation.

Venture of Small profit: These kinds of entrepreneurial ventures focus on

generating a decent amount of profit. These businesses do not aim at profit
maximization or business expansion (Burns and Dewhurst, 2016). The growth
and development scope of small profit ventures are relatively low. Thus, these
ventures have the scope of slowly expanding the business with the course of
time, which can be done by environment scanning, through implementation of
analytical tools, such as PESTLE and SWOT.

There are many small profit ventures, such as shops: fast-food - Boston,
Rustic, Sunrise – haircut, barber and nail, Turkish shop “Waites” - fruits,
vegetables and groceries, Poppy’s hair and nail salon, Michael’s Dry Cleaners-
Dry cleaners Alterations & Laundry Services, Adams Ophthalmic Opticians and
others in the Borough of Watford South Oxhey, owned by the local people of the
region,

The four M’s of Small Profit Ventures are as follows:

Men: The owner along with the family members and friends usually operates
these kinds of businesses.

Material: The resources required by these kinds of ventures depend on the

nature of the company.

Money: The budget of these kinds of business is usually low. Therefore, the
required budget is acquired from either one’s own personal savings or small bank
loans.

Machines: Small profit venture do not require many machineries. The basic
requirements are vehicle for transportation and basic tools and software. (Ulearn,
2019)

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Lifestyle Venture: This type of entrepreneurial venture can be referred as the
small businesses providing its owner autonomy, independence along with control
(Bredvold and Skålén, 2016). These types of ventures have the scope of growth
and development, as everybody requires these kinds of products and from time
to time. These types of ventures can assess its scopes by scanning its
environment through various analytical frameworks. In the Borough of Watford
South Oxhey, there are many lifestyle ventures, which are operated from the
houses of the local people; as a result, they get flexible working hours. There
many lifestyle ventures Ascension Ventures, for instance, Hair Dresser Shops,
Tailor Shops, local Laundry and many others in the concerned region.

The four M’s of Lifestyle Ventures are as follows:

Men: Lifestyle ventures are usually small and thus, do not require a big
workforce. Therefore, the companies require recruiting a limited number of
people to assist with the operations.

Material: The resources required by these kinds of ventures depend on the

nature of the company.

Money: The budget of these kinds of business is usually low, can be high,
depending on the size of the business. Thus, the budget can be obtained from
one’s own personal savings, or bank loans, as well as investors, as per the
business size.

Machines: Depending on the nature of the business, the machinery

requirements of lifestyle ventures vary. Vehicles for transportation is common for
every kind of lifestyle venture; however, the technological requirements vary, for
instance, the machinery requirement of a tailor shop will be different than that of a
hair dresser shop.

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Typology of Entrepreneurship

There are mainly five typologies of entrepreneurship, which are discussed as

follows:

Figure 1: Typology of entrepreneurship

(Source: Schaper, 2016)

Corporate Entrepreneurship: This type of entrepreneurship can be referred as

the entrepreneurial activities, which are executed in huge corporations, such as
expansion of the organisation, diversification of the entrepreneurial activities for
sustainability and others as such. The amount of this type of entrepreneurship in
the Borough of Watford South Oxhey is comparatively low, for instance: Tesco -
grocery and petrol station, Countryside Constructions Inc, Co-op Food, is a brand
devised for the food retail business of the consumer co-operative movement in
the United Kingdom, The brand has 15 different co-operative societies which do
operations over 4,000 shops (Wikipedia, 2019), one of them is in South Oxhey.

Example of Big Organisation

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 Tesco Scope: Tesco is the largest UK retailer, providing customers in almost
7000 stores around the world was well as online with groceries and other non-
food goods. As of 2016, the number of Tesco’s employees has reached 335
thousand around the UK and around 700 employees in the Watford
branch. Their main purpose and scope are to satisfy clients to the best of
their ability, with excellent quality of products and outstanding service. Tesco
also wants to
 “Understand customers”
 “Be first to meet their needs”
 “Act responsibly for our communities” (https://www.tescoplc.com/about-
us/core-purpose-and-values/)

Tesco Development: The Tesco Branch in Watford was founded in 1984. It

was hoped that the development would revitalize the area and provide around
400 jobs in which it succeeded. Mainly a food store with a sales area of
44,500 square feet, the superstore was built with and a bakery and a coffee
shop.
A surface level car park with around 750 spaces was also provided and
operated by Tesco and a gas filling station was planned for the site and built a
few years later. (https://www.watfordobserver.co.uk/news/11518838.hurrah-
here-comes-tesco/)

Tesco Growth: In 1993, the clothing brand F&F was introduced in Tesco
Branches around the UK as well as in Watford. This benefited massively to
their annual profits, as customers could now shop at Tesco for a larger variety
of products. Later in the year 2000, Tesco Watford introduced online shopping
and shipping which also enlarged their annual profits by 20%. Furthermore,
starting from 2009 Tesco started to offer some technology such as TVs and
computers. They later expanded their array of technology, adding products
such as mobile phones, digital tablets, printers and photocopiers, headphones
and earphones etc.

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 Private or Independent Entrepreneurship: This type of entrepreneurship can
be referred to the entrepreneurial activities of the independent or private entities
in which the process of entrepreneurship is largely prevalent (Bögenhold et al.,
2014). This the most common type of entrepreneurship in the Borough of Watford
South Oxhey. such as:

Example of Medium Organisation

Countryside Constructions Scope: This is a construction firm founded 60 years

ago, known for their designing and constructing, sound governance and
management. They have been awarded with several distinctions, including Large
Housebuilder of the year (2017) at the Housebuilder awards. Their total number of
employees around the UK reaches almost 1000 however there are only about 50 in
their South Oxhey branch.

They deliver their construction service in 2 sections: Housebuilding and

Partnerships.  

The Housebuilding section work on private sites. It operates under the Countryside

and premium Millgate brands.  

Their Partnerships section mainly works in urban re-building of public spaces but

also teams up with local authorities to provide private housing.

( https://www.countrysideproperties.com/about-us)

The diagram below shows their financial results for the year 2018:

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Figure 2: Financial Report 2018

Source: Countryside Properties PLC annual report 2018.pdf

Countryside Construction Growth & Development:

They started off in 1958 as a small organization with only about

60 employees. At first, they only had around 5 projects per year
with a low profit of £100,000. Gradually they started doing
projects on a larger scale such as reconstructions of parks and
residential complexes as well as rebuilding whole
neighbourhoods. In 2016, Countryside was listed on the London
Stock Exchange. Their balance sheet enables them to continue
investing in their systems in order to succeed future growing
plans.

By the end of 2017, Countryside Construction provided 3,389

homes with revenues of £1,028.8m. They also generated
£34.5m in economic and social benefits.
(https://www.countrysideproperties.com/about-us#na)

Example of Small Organisation

Adam’s Eye Care Scope: This is a local ophthalmology was found in

1948. Their professional opticians are registered with the General Optical

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 Council, who are experts in helping clients on anything concerning vision and
eye health. They organize eye-check appointments every 6 months and
prescribe lenses or different medication. They also provide a range of Brand
as well as Budget frames in their branches.

Adam’s Eye Care Growth & Development: Adams Eyecare started operating
in 1948. Furthermore, and they have been awarded The Acuvue Centre of
Excellence for their professional services. Branches were available in 8
regions,however now only two practices remain: Harrow Weald, and South
Oxhey with only around 15 employees. This means that the activity of this
enterprise has diminished. The factors that could have influenced this are:

 High competition
 Lack of adaptation to the demands of the growing market
 Lack of new products offered to customers

(https://www.adamsopticians.com/about-us.html)

Public Sector Entrepreneurship: Public Sector Entrepreneurship can be

referred as the activities of the entrepreneurs, which are executed by
organisations or enterprises that connected to the governing bodies or owned by
the state. The amount of this type of entrepreneurship in the Borough of Watford
South Oxhey is relatively low, for instance, Storm Technologies Ltd, Royal mail,
Transport for London, Library, South Oxhey leasing Center – Everyone Active
etc.

Academic Entrepreneurship: This type of entrepreneurship activities is carried

out in research and academic institutions, which is inclusive of researching new
products, systems, processes, materials and others as such and developing them
so that these can lead to intellectual property rights. There are scopes of these
kinds of entrepreneurship activities in the Borough of Watford South Oxhey.
Examples are: Oxhey Wood primary school, Warren Dell school, local library.

Social Entrepreneurship: This type of entrepreneurship can be referred as the

entrepreneurial activities conducted by the charitable companies, Non-
Government Organisations, and other social entities. There are scopes of these

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kinds of entrepreneurship activities in the Borough of Watford South Oxhey as
well. Examples are: Oxfam – charity organization – shop of cloths and others,
charity furniture shop.

Relationship between entrepreneurship typology and entrepreneurial

ventures

The entrepreneurial ventures are interconnected to the typology of the

entrepreneurship. The entrepreneurship can be categorized on the foundation of
individual functions as well as strategy of marketing and promotion. With the
development of new and innovative concepts and ideas along with effort, various
strategies are devised by the different businesses for maximizing profit. It has
been explained in the typology of entrepreneurship that several business
entrepreneurships develop diverse business strategies. The objective of
developing these strategies is to maximize the profitability of the company and
allow the organization to grow in the market. It is extremely essential while
acquiring business growth, comprehending the connection between various kinds
of entrepreneurial ventures and entrepreneurship typology. (Ulearn, 2019)

P2: Explore the similarities and differences between entrepreneurial

ventures.

All the entrepreneurial ventures carry out some common activities such as
innovation of new ideas, promotion of new products and services in the market
and others as such. However, there are some activates carries out by these
entrepreneurial ventures which are different in nature such profit maximisation
and many others.

The similarities between the different kinds of entrepreneurial ventures

are discussed as follows:

All kinds of entrepreneurial ventures, for instance corporate entrepreneurship,

private entrepreneurship, public sector entrepreneurship, and others were

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established with the common objective of development of a model business.
These entrepreneurial ventures are either operated by the owners themselves or
employees are recruited for assistance. All of these ventures utilize the
accessible resources and obtains profit from the investments. In addition to that,
all these ventures assess the market prior to launching a product or a service.
Moreover, aspects such as motivation, passion and others as such work as chief
drivers for success for all of the entrepreneurial ventures.

Dissimilarities between the different kinds of entrepreneurial ventures are

discussed as follows:

Aspects Small Medium Large

Social
business Scale Company
Entreprene
entreprene Entreprene Entreprene
urship
urship urship urship

Roles Provides Provides Manufactur Looks after

products products es products the welfare
and and that are of the
services services innovative society.
and earns and earns in nature Oxfam–
money. money. Ex. Tesco – charity
Examples: Countrysid organizatio
Adams e and providing n – shop of
Ophthalmic Constructio customers cloths and
Opticians ns Inc build in almost others,
offers for and repair 7000 stores charity
people houses, around the furniture
services parks world was shop.
ophthalmol well as
ogy online with
services, groceries
glasses and other
sales non-food
goods.

Characte Small sized Medium Large size The size of

ristics business Sized business such
with very business Tesco, businesses,
few staffs for instance Countrysid for example
Gem Tree e and The
Manageme Constructio Samaritans
nt, and N ns Inc, of South
Clark have more West Herts,

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 Window than two Oxfam are
Cleaning hundred reliant of
Ltd, have employees the scopes
more than and other
50 and less as such
than 250 factors.
employees

Operate the
To assist
Operate venture To
the poor
the venture successfull maximize
Goals and
successfull y and the
homeless
y expanding profitability
people
Business

The
The The decision- The
decision- decision- making limit decision-
making making limit in these making limit
Decision- limit in in Medium kinds of of one
Making these kinds scale businesses social
Limits of entreprene is huge due entreprene
businesses urship is to urship
is very low to availability varies from
restricted. medium. of the other.
resources.

The job
security in
medium
The job The job
scale
security in security in
entrepreneur
small The job social
ship, for
business security in entrepreneur
instance
entrepreneur large ship, for
Gem Tree
ship, such as compnay example The
Job Management
Fruit sellers entrepreneur Samaritans
Security , and N
and Turkish ship is low, of South
Clark
Groceries, is as there is West Herts,
Window
high, as high supply is medium,
Cleaning
there is low of labour as the supply
Ltd, is
supply of of labour is
medium, as
labour. medium.
the supply of
labour is
medium.

Number Ten to Fifty to less More than No fixed

of forty-nine than two two number of

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 employees.
hundred
hundred
and fifty
Adams and fifty
staffs
Ophthalmol employees
Employe ogie,
Countrysid employees
es Turkish Tesco
e
employees, Watford –
constructio
grocerie – 800
n – 50
self employees
employees
employers

These
kinds of
ventures
There is no
The acquire a
taxation on
medium The large number of
the
scale company tax
business
business entreprene benefits,
but is
Taxation pays a urships and the
passes
certain have to pay taxation
through the
percentage corporate amount
owner of
of their tax. varies from
the
profitability. one
business.
organisatio
n to
another.

Level of
Level of Without
borrowed
borrowed loans or
resources
resources Level of low level of
is low to £
is medium. borrowed borrowed
1 mil.
(Owner, resources resources
(Owner,
Borowin medium is medium. (Owners,
small
g loans) to £3 (Owner, govername
loans)
mil. loans up to ntal founds)
Adams
Countrysid £ 100 mil. Oxfam,
Ophthalmol
e Tesco Charity
ogie,
Constructio organizatio
Turkish
n Inc ns.
grocerie

Table 1: Dissimilarities between entrepreneurial ventures

(Source: Created by the learner)

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P3: Interpret and assess relevant data and statistics to illustrate how micro
and small businesses impact on the economy.

The small businesses contribute to the economy effectively, by providing job

opportunities, addressing the requirements of the larger companies, bringing in a
substantial amount of money into the economy. The manner in which the micro
as well as small businesses influences the economy of Borough of Watford South
Oxhey as well as the UK is discussed as follows:

Figure 3: Economic Review of Small Businesses in UK

Turnover: Turnover is one of the most significant aspects, which must be

considered at the time of measuring the economic contributions of micro as well
as small business (McDonald and Wilson, 2016). These types of businesses
such as Fruit sellers and Turkish Groceries have contributed more than a billion
pounds in turnover in the past year. The amount provided by the micro and small
businesses account for around 50 percent of the total turnover acquired form
private organisations in the UK.

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 Figure 4: Turnover from Micro and Small Businesses

(Source: bytestart.co.uk, 2019)

Growth of GDP: The small and micro businesses such as Fruit sellers and
Turkish Groceries have enhanced the economic growth of the United Kingdom as
well as Borough of Watford South Oxhey by contributing towards the GDP. These
kinds of businesses acquire the scopes of increasing their businesses as many of
the larger organisations fail to operate. As a result, the micro and small business
have contributed positively towards the economy of UK.

Figure 5: Overall performance of Small Businesses (Source: Ec.europa.eu, 2017)

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 Growth: With the assistance of innovation, the micro along with the small
businesses for instance Fruit sellers and Turkish Groceries have grown and
developed in the past few years. More than thirty percent of these kinds of
businesses have been involved in innovative activities that changing the
industries. In addition to that, these kinds of businesses have helped the
economy in the UK to be stable and get out of inflation which had hit the nation a
few years back.

Figure 6: Employment Opportunities in Small Businesses

(Source: Ec.europa.eu, 2017)

Opportunity of Employment: The micro businesses along with the small

businesses, for example Fruit sellers and Turkish Groceries, have provided the
people of Borough of Watford South Oxhey as well as the United Kingdom with
recruitment opportunities. In past few years these kinds of businesses have
recruited more than 20 million individuals that accounted for more than fifty
percent of the overall recruitment scopes provided by the private organisations in
the nation.

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P4: Explain the importance of small businesses and business start-ups to
the growth of the social economy.

The small business or corporations are generally companies, which are

owned by one person and are a private organization. They have generally the
capacity of less than 500 employees, but this can vary for different organization.
They have the power in its field to operate freely and gain competitive advantage
by catering to the needs and demands of their customers. According to a survey
done by CNBC, and Survey Monkey there have been much establishment of
more than 2000 small businesses in the UK market (Bloom, 2017). The small
businesses are expanding in such levels that even in the rise in the
unemployment and in the rigid competition within the market; they are planning to
hire more employees (Noland, 2018).

The small business has also helped the unemployed people a chance of
getting work as they are intending more in the hiring of the not so qualified
people, which have led the decrease in unemployment. Nevertheless, eventually
they have become a reason to improve the unemployment rate in the United
Kingdom Market and are becoming the big support to build up their economic
condition. The UK business has a very aggressive attitude towards business
ventures which makes them bad at customer service altogether. The small
business does not get much attention, which the UK business gets with the good
attitude towards the customers. The UK Administration has at least 99 percent of
small businesses, which were private sectors in the starting of the year 2018. The
employment rate increased to 16 million, and the private sectors were the first
one to hire new employees promoting employment and in return increasing the
economic status of the United Kingdom. The unemployment rate was relieved
from the year 2018 in a remarkable rate boosting up the economic status of
United Kingdom. The end year turnover of the small business organization of the
United Kingdom was near- about 2.5 million, which was acquired from the small
business organizations. Most of the turnover came from the established from the
small private sectors which constitutes 50 percent of the UK economy.

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 Figure 7: The Growth of small businesses in the UK market

(Source: Fsb.org.uk, 2019)

The importance of small business

 The importance of small businesses is that they provide support to the local
communities and as said before they also support the unemployed peoples of
the locality the small business is set up.
 Especially like, for examples like the company, Planet of the Grapes is one of
the favourite wine shops, which has excelled in its field and became a
renowned name in the Britain competitive market. The wine shop hires many
employees to work for their wine shop supporting the peoples who are
employees. Therefore, one of the advantages of small businesses in the UK
market is that it gives immense support to the development of the economic
status of the country.

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Conclusion

This part of the study emphasizes on the various businesses and the type of
entrepreneurs working in it to develop the economic status. The differentiation
between the various types of business is also enunciated in the study and the
explanation is related to the Borough Watford South Oxhey. The second part
consists of the importance of the small businesses in the United Kingdom and the
report states that the recent growth of the small business has supported the
people who were unemployed and increasing the economic status of the United
Kingdom.

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