Entrepreneurship and the World Economy

This report discusses the characteristics and role of entrepreneurs, their contribution to the UK economy, and the UK government's support for entrepreneurship.

Entrepreneurship and
the World Economy

Table of Contents
INTRODUCTION...........................................................................................................................1
Main body........................................................................................................................................1
Explain the characteristics and role of entrepreneurs.............................................................1
Critically evaluate that how entrepreneurs have contributed to the UK economy.................4
Critically examine how UK has contributed to entrepreneurship..........................................8
Use any two entrepreneurs to support points and arguments.................................................9
CONCLUSION..............................................................................................................................10
RECOMMENDATIONS...............................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Entrepreneurship refers to the self-employed persons who deals with the additional
uncertainty. It defines as a process of designing and running a business operation which are new
innovative but initially starts as a small enterprise. This is also considered as a capability and
willingness to develop, manage as well as organise a new venture along with its risk to make
profits. Whereas, entrepreneurs and managers both have distinct identity and characteristics as
they are different from each other. In this report two organization is chosen such as Dyson
vacuum cleaner and Amazon. Dyson vacuum cleaner is a British technology company which are
founded in UK by sir James Dyson in 1991. The company designs and manufactures household
appliances such as vacuum cleaner, purifiers, heater, hand dryers, light and so on. Moreover,
Amazon is an American multinational technology company which are founded by Jeff Bezos in
1994 and based in Washington, which emphasised on e-commerce, cloud computing, artificial
intelligence as well as digital steaming. It considered as a big four technologies company along
with Google, Apple and Facebook. It is known as a disruption of well-established industries
through technological innovation and mass scale. Under this report discussed about the
entrepreneurship and some features and role of entrepreneurs such as Alan Sugar and James
Dyson. Also, shows that how businessman has contributed towards the United Kingdom
economy and the country’s government contribution to encourage entrepreneurship. In this
report use entrepreneurial backgrounds and experience to show the impacts of these enterprises
on country’s economy and growth rate.
Main body
Explain the characteristics and role of entrepreneurs.
There are various entrepreneurs in the market and all they have unique sets of
characteristics and roles which are essential for taking an innovative steps (Kozubíková, 2017).
In this report discussed about the roles and nature of two entrepreneurs such as Alan Sugar and
James Dyson that are as follows:
Characteristics of Alan Sugar: Vision: It is about strategic planning which is always kept by successful entrepreneur as it
shows the big picture of future and ability can make better people. This will help in
identify challenges as well as tackle day to day responsibilities of job while staying
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emphasized on long term goals and initiatives. Alan Sugar has clear and imaginary vision
to be a successful businessman which helps in taking several initiatives. Risk tolerance: Every entrepreneur wants to grow and succeed in their businesses which
involves changes and risks (TobingCécora, 2019). Alan sugar don't be afraid to take risks
when he takes initiates to become an entrepreneur, when pursuing many clients etc.
 Decisiveness: All decisions and judgements have consequences either good or bad. Over
the period of time these phenomena shape reality as well as express the substances of
lives. Alan Sugar doing well return note and cautiously determine the possible long
period of time effects of all decisions, while hunting counsel before taking major
decisions.
Role of entrepreneur: Leader role: Entrepreneurs should enact as a leader because they may need to carry
persons with dissenting approaches as well as views to work together in a team. Alan
Sugar needs to be good with his human resource management and leadership styles
(Åstebro, 2017). He has to lead individual by recruiting, firing, training, developing as
well as motivating to utilize their resources properly when it is required. Monitor role: Entrepreneurs treated as a regulatory body of an organization as they
monitor and control the whole environment internally as well as externally constantly.
Alan Sugar needs to be a good monitor to control and measure the performance of
workforce as well as businesses to achieve the long-term growth and success (Blair and
Hitchens, 2018).
 Liaison role: An entrepreneur should be an intimacy man for their own business. They
should be the source of link with the outside world and inside organization and always
trying to find out opportunities to work together with large scale organizations. Alan
Sugar needs to be a liaison for his own enterprise which helps in taking a competitive
advantage and secure success for a long duration.
Characteristics of James Dyson: Creative: This is an essential characteristic of an entrepreneur which needs to always be
thinking of new ways for improving company's workflow, productivity as well as bottom
line. James Dyson have creative nature which helps them in facing problems and solved
in an effective manner. He is successful in their life because of their creative nature.
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 Problem solving: Very few entrepreneurs have willingness to experience failure and
successful businessman realize that failure is just an information related to what does not
work, but not the end of the journey. James Dyson continue trying long after fails many
times and he kicked out from it through problem solving (Spigel, 2017).
 Forward thinking: All successful entrepreneurs have this kind of nature which is
required to predict the near future along with its market conditions and risk factor. James
Dyson also have forward thinking as he predicts or forecast proactively to secure their
future and limits its risks by having plans and solutions.
Roles of Entrepreneur: Figurehead role: Entrepreneurs requires to be head in businesses and give their full
participation in formal duties and responsibilities like represents enterprise in several
events in a formal or informal way or even being the spokesperson whenever there is
interference of press release. James Dyson needs to be a player of figure head to represent
himself in front of public as well as focused on being good persons by showing own
personality attributes (Roberts, 2019). Spokesman role: Entrepreneur as well as manager should also act as a spokes soul of an
organization to communicate information inside and outside of their businesses. James
Dyson needs to be a source of information as well as knowledge about their own
company to attract potential and loyal investors and collaborators which helps in
increasing the company's profits and success. Resource allocator: An entrepreneur requires to find out how the available resources can
assign between several departments of an organization as per their requirements or
demand. James Dyson needs to be an effective resource allocator to achieve the goals and
objectives of their businesses effectively as well as utilize all available resources in an
appropriate manner (Sauka, 2017).
 Negotiator role: Entrepreneurs must discuss on behalf of an organization insides as well
as outsides. Internally with its staff and externally with collaborators and investors. James
Dyson have opportunities to be emphasized more on their job role and being a win deal
breaker, which helps in satisfying all persons who are related with their enterprise either
directly or indirectly.
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Critically evaluate that how entrepreneurs have contributed to the UK economy.
Entrepreneurs plays an important role in country's economy either positively or
negatively. These positive and negative impacts of entrepreneurs on UK's economy are described
as follows:
Positive impact of entrepreneurs on country’s economy: Economic growth: The success of an entrepreneur is ultimately in creating products as
well as services that are valuable to the living of its customers. Businessman helps in
creating wealth for a local economy as a result of people employed as well as create
wealth on national level in a form of taxation to the government (Henry and Lewis,
2018). Now further a person innovates to development in underdeveloped countries that
needs robust logistic systems, capitalism investment, skilled and desired employees etc.
so entrepreneurship benefits a large part of the economy. Job creation: In order to say that the main reasons of individual’s that they tend to
become an entrepreneur because they are not able to find out a suitable job opening. As a
result of this they focus on creating and searching market niche for the purpose of
generate income for themselves as well as to employ other people in its own business
organizations. So, it impacts positively on country’s economy as they reduce
unemployment. In many developed countries finds that approx. 40-50%bpeople are
employed in small and medium enterprises which are start-up by an individual’s which
known as entrepreneurs. Innovation: If a person being an entrepreneur then it is clear that they drive with
innovative and creative ideas as well as thoughts. It can be showing the positive impact
on the economy as they contribute innovations in a particular sector in respective country.
By finding a better solution of problems grab an opportunity to take competitive
advantages as businessman can drive innovation in the marketplace as well as creates
high competition as a result of this customers get affordable products and services which
they required (Malecki, 2018).
 Increased competition: It is a good thing for customers as it facilitates a better quality of
product to survive in the market for a long period of time. Huge competition leads in
price wars that plays a strong role in taking competitive advantage but community or
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public take benefits of affordable prices as they have many options to buy goods and
services. This will directly contribute to the country’s economy positively.
Drawbacks: Use of natural resources: To operates any business operations in some ways a company
use natural resources to perform activity. These natural resources include air, water, gas,
electricity as well as paper and these all are unavoidable. Some entrepreneurs will
balance the use of resources through give donation to relevant charities as well as trust as
a self-taxation but not all do that for offset their uses. This will negatively impact upon
the country’s economy. Governmental control: It can be said that government nurture entrepreneurship that
results in unbalancing market activities by exploited an environment. This can evident in
unfair pricing, frauds, monopolies as well as corruptions (Scott, 2018). A prominent
economist and scholar write that “while entrepreneurship may increase economic growth
as well as material welfare of society but it may not always lead in increasing non
material wealth such as happiness.”
 Unemployment: on the one side entrepreneurs helps in generating employment
opportunities for local people on the other side it also leads in creating unemployment
because existing employees are not able to perform with innovative ideas or techniques.
It is often in case of UK retail sector, where national chain operates new stores in town or
villages that forces independent so local workers or retailers into a compulsory challenge.
This will impact negatively on the country’s economy.
Dyson Vacuum cleaner:
This company gives huge contribution to the UK’s economy as the owner of company
James Dyson exporting strengths as well as commit towards generating jobs opportunities in
Britain considered as a real success story along with a strong plan to develop Britain presents at
globally. This defines as a expansion plan which are developed for the government among
increasing speculation towards the future of public facility (Laengle, 2017). Whereas BMW also
choose Germany to develop new electric minis instead of its main factory at Oxford. The main
concern behind this step is to that jobs could be lost at Vauxhall’s workplace in Ellesmere Port
and Luton if the owner of PSA group i.e. Peugeot deals to buy parent company that is General
Motors European enterprise. Dyson will increase their UK geographical area by developing a site
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on former ministry of Defence airfield and intends to their at least double workers of 3500 over
next few years. Dyson said that the country UK is suffering more from uncertainty in economic
conditions as well as that expectation of country leaving the Europe had not advised me to
investment (Dyson shrugs off Brexit fears with massive UK expansion plan, 2019).
Amazon:
This organization have invested in UK to develop the digital as well as physical
infrastructure to supply products and services to the millions of customers (Minford, 2019). It
contributes more towards the UK economy, by the end of 2019 as they commit to employ over
29500 employees along with highly skilled and knowledge across the head office in London. The
company will opens many developmental centres, customer service support as well as fulfilment
station and delivery centres over the United Kingdom. Amazon assists more than 85000 job
opportunities in UK.
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Illustration 1: Cities outlook, 2015
Source: (Cities outlook, 2015)
Interpretation: It can be interpreted from the above graphical presentation that entrepreneur's of
various cities of UK contributes 9%. these cities makes a bigger contribution towards the
country's economy as they increase businesses and populations 54%, provide job opportunities
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59%, have high skilled job ratio is 72% and contributes towards the development of entire
economy (Cities outlook 2015. 2019).
Critically examine how UK has contributed to entrepreneurship.
As to promote entrepreneurs UK's government facilitates several options to enhance their
enterprises in a local area. Due to the Brixit deal between UK and Europe leads in heavy losses
as they apply their own rules and regulations now (Blundel, 2017). There are several factors
which gives benefits but impacts negatively also. The positive as well as negative impacts of
UK's government on the entrepreneurship growth and expansion after the Brixit deal are shown
as follows:
Positive impacts of UK government contribution towards entrepreneurship: Provides intellectual property rights: This rights is important to support their innovative
ideas with full protections which is required to defend their ideas to copying by others.
All entrepreneurs has risk and fear to illegal activities so government of UK protect them
to facilitates legally protection for their ideas and stop giving opportunities to grow their
competitors. Reduce burden on business formation: It is easy to businessman as they starts enterprise
in every environment but they have some barriers to enter into new geographical location
of other countries (Anderson, 2017). So the UK government can secures that the
requisites of starts business are possible at aggregate level to assists formal as well as
informal businesses. Provides funding facility: The major obstacles which are faced by an entrepreneur to
start their businesses which is investment and capital. The UK's government develops
local banks to support small businesses and start ups by facilitating loan facility. This will
encourage businessman within the ecosystem of particular country.
 Incentivised tax laws: It is very important for the UK's government to regularly reform
tax policies as it promotes the growth of small business or entrepreneurship. Mainly
focused on reducing corporate tax benefits to businessman that they can have positive
impact on the economy as increasing the new ventures (Gebara and Agrawal, 2017).
Negative impacts of governmental contribution towards entrepreneurship:
UK have strict rules and regulations and provides many opportunities to expand
businesses but due to the Brixit agreement a country suffers more. Rules are imposed strictly on
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the large scale organizations as they have different rules after the Brixit deal between UK and
Europe because large enterprises gives high rate of return to the country and contribute more
towards the economy (Strand, 2017). Due to this reason small and medium enterprises as well as
entrepreneurs suffers more as they have strict rules to enter into a market and expand their supply
chain. So, UK's government effect entrepreneurs at a large extent.
Use any two entrepreneurs to support points and arguments.
Alan Sugar:
In early days. Fund was in short sully as well as time were growing difficult in a council
house, London. Around the age of 12, Lord Alan Sugar began his money earning journey by
becoming a greengrocer that gives a small but regular income to survive. He left school at 16,
with an ambition and desire to becoming a successful entrepreneur or businessman and had
selling car aerials as well as electronic material which were needed by people. Quickly in the
young age of 21 in 1968 he was founded technology company and by the time he turned 40 the
estimated worth of his company was £500 million. However, it was not all smooth sailing, due to
the market crashes in late 1980's and rival companies emerging their businesses, Amstrad's value
dropped by hundreds of millions in a short phase of time. BSkyB purchased Amstrad for around
£120 million (How wealthy is Lord Alan Sugar?, 2019).
James Dyson:
James Dyson is a British inventor and founder of the Dyson company, which is a firm
believer in failure. In fact, he sees as very important part of his success and takes a step towards
a truly innovation solution. When Dyson invented first Dual Cyclone vacuum cleaner, that hit
stores in 1993. he spent 15 years for creating 5126 versions which were failed initially which
failed before he made one which works properly. The multi-billion-dollar company known for its
creativity as well as forward thinking designs. Dyson says failure is very interesting it is a part of
making progress because he believes on that a person never learn from its success but learn from
failure. They focused on failure and kick it out through problem solving technique. Dyson works
on employee’s encouragement towards taking risks because he thinks that having right kind of
attitude like humble, curios, willing to fail and try and so on as well as hired that kind of people.
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CONCLUSION
It has been concluded from the above report that entrepreneurs play an important role in a
particular country as it helps in increasing the GDP, employment as well as contributes towards
the country’s economy. As in this report analyse the characteristics and roles of entrepreneurs
such as Alan sugar and James Dyson which are needed to being a successful entrepreneur and
plays a crucial role in an organization like leader, investigator, negotiator as well as resource
allocator and so on. In addition, understand the role of businessman on UK’s economy as well as
country’s contribution to promote entrepreneurship in a specific country. There are several
reasons that entrepreneurs contribute to the country such as innovation, employment
opportunities, wealth generation as well as increase lifestyle. Whereas, government also
contributes to entrepreneurs by making favourable regulations which includes unfair trade
practices, criminal activity as well as pervasive corruption. Lastly, facilitates some kind points
and data which shows that entrepreneurs play significant role in United Kingdom’s economic.
RECOMMENDATIONS
There are some recommendations which can be used by an entrepreneurship to remove
the negative impacts of entrepreneurs.
 An entrepreneurial organization should focus on the social initiatives that consider green
concept that effect natural resources and strives to keep its minimal.
 An entrepreneur should balance business activities as per the market demand.
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REFERENCES
Books & Journals
Anderson, A. and Ronteau, S., 2017. Towards an entrepreneurial theory of practice; emerging
ideas for emerging economies. Journal of Entrepreneurship in Emerging Economies.
9(2). pp.110-120.
Åstebro, T. and Tåg, J., 2017. Gross, net, and new job creation by entrepreneurs. Journal of
Business Venturing Insights. 8. pp.64-70.
Blair, D. M. and Hitchens, D. M., 2018. Campus companies: UK and Ireland. Routledge.
Blundel, R., Lockett, N. and Wang, C., 2017. Exploring entrepreneurship. Sage.
Cécora, J., 2019. Cultivating grass-roots for regional development in a globalising economy:
innovation and entrepreneurship in organised markets. Routledge.
Gebara, M. and Agrawal, A., 2017. Beyond rewards and punishments in the Brazilian Amazon:
Practical implications of the REDD+ discourse. Forests. 8(3). p.66.
Henry, C. and Lewis, K., 2018. A review of entrepreneurship education research: Exploring the
contribution of the Education+ Training special issues. Education+ Training. 60(3).
pp.263-286.
Kozubíková, L. and et. al., 2017. Important characteristics of an entrepreneur in relation to risk
taking: Czech Republic case study. Journal of International Studies. 10(3). pp.220-233.
Laengle, S. and et. al., 2017. Forty years of the European Journal of Operational Research: A
bibliometric overview. European Journal of Operational Research. 262(3). pp.803-816.
Malecki, E. J., 2018. Entrepreneurs, networks, and economic development: A review of recent
research. In Reflections and extensions on key papers of the first twenty-five years of
advances (pp. 71-116). Emerald Publishing Limited.
Minford, P., 2019. The UK Approach to Brexit. In Brexit Negotiations After Article 50:
Assessing Process, Progress and Impact (pp. 31-52). Emerald Publishing Limited.
Roberts, E. B., Murray, F. and Kim, J. D., 2019. Entrepreneurship and Innovation at MIT:
Continuing Global Growth and Impact—An Updated Report. Foundations and Trends®
in Entrepreneurship. 15(1). pp.1-55.
Sauka, A. and Chepurenko, A. eds., 2017. Entrepreneurship in transition economies: Diversity,
trends, and perspectives. Springer.
Scott, M. G., Klandt, H. and Rosa, P. eds., 2018. Educating entrepreneurs for wealth creation.
Routledge.
Spigel, B., 2017. The relational organization of entrepreneurial ecosystems. Entrepreneurship
Theory and Practice. 41(1). pp.49-72.
Strand, J. and et. al., 2017. Using the Delphi method to value protection of the Amazon
rainforest. Ecological Economics. 131. pp.475-484.
Tobing, D. S. K., THE ROLE OF LEADERSHIP IN BUSINESS COMPETITION TOWARDS
ASEAN ECONOMIC COMMUNITY OF 2015.
Online
Cities outlook 2015. 2019. [Online] Available through:
<https://www.centreforcities.org/publication/cities-outlook-2015/>.
How wealthy is Lord Alan Sugar?. 2019. [Online] Available through:
<https://www.telegraph.co.uk/business/0/wealthy-lord-alan-sugar/>.
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Dyson shrugs off Brexit fears with massive UK expansion plan. 2019. [Online] Available
through: <https://www.theguardian.com/technology/2017/feb/28/dyson-shrugs-off-
brexit-fears-with-massive-uk-expansion-plan>.
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