Introduction to Entrepreneurship and the World Economy

Critically evaluate how the UK has contributed to Entrepreneurship 8 CONCLUSION 10 REFERENCES 12 INTRODUCTION Entrepreneurship is essentially a process which is concerned with launching and designing new business within potential market. This report is going to cover the entrepreneurial strategies of which are adopted by Alan Sugar and James Dyson in order to effective carry out their businesses in potential market.

Entrepreneurship
and the World
Economy

Table of Contents
INTRODUCTION...........................................................................................................................2
MAIN BODY...................................................................................................................................2
1. Characteristics and the role of Entrepreneurs.........................................................................2
2. Critically evaluate how Entrepreneurs have contributed to the UK ECONOMY..................6
3. Critically evaluate how the UK has contributed to Entrepreneurship.....................................8
CONCLUSION..............................................................................................................................10
REFERENCES .............................................................................................................................12
1

INTRODUCTION
Entrepreneurship is essentially a process which is concerned with launching and
designing new business within potential market. The people who create these organisation are
called entrepreneurs. Moreover, an entrepreneur is commonly seen as a innovator and a major
source of new ideas. They also play a very major role in economy, inventing effective and
innovative ideas into potential market. Furthermore, the process of entrepreneurship is risky in
nature but it also tends to generate hight economic wealth and growth through consistency is
significantly witnessed. Apart from this an entrepreneur also acts as a coordinating agent within
a capitalist economy (Ács, Szerb and Autio, 2016). All the activities performed by entrepreneurs
essentially helps in attaining accomplished business objectives. Apart from this entrepreneurial
activities extensively benefits government of the country within business operations are carried.
Because variety of employment opportunities are essentially created and unemployment rate
tends to reduce. This report is going to cover the entrepreneurial strategies of which are adopted
by Alan Sugar and James Dyson in order to effective carry out their businesses in potential
market. Alan Sugar is the founder of consumer electronics company Amstrad whereas James
Dyson is the co-founder of Dual Cyclone and Dyson Ball vacuum cleaners. The outcome of this
report is going to covers several aspects regarding entrepreneurs. Proper evaluation shall be
made in order to determine the major characteristics of entrepreneurs and their contribution to
UK economy. Furthermore, evaluation with regard to how UK government has contributed to
entrepreneurship will also be identified. Examples with regard to well known entrepreneur is
made.
MAIN BODY
1. Characteristics and the role of Entrepreneurs
Entrepreneurs: It refers to a person who is responsible for set up a new business as well
as conducting business activities. Entrepreneur is an individual who will organize a venture and
liable to take all benefits from it. Individual who creates and build a new business as well as have
to bear most of the risk related to business and who have right to enjoy most of the rewards
earned by businesses is known as entrepreneur. They are majorly seen as a source of new and
creative idea of product and services.
Characteristics of Entrepreneur
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There are several characteristics of a person which leads to as successful entrepreneur.
There are various key skill and abilities which are necessary for brining new idea as well as
successful implementing it to gain maximum benefits. Different characteristics of a successful
entrepreneur is mention below. Self motivation: This can be consider as one of the most important characteristics of an
entrepreneur as it helps them in achieving goals and objectives (Afolabi, 2015). Self
motivation is very helpful in conducting business activities in more effective and efficient
manner without any support from other person. When a person is self motivated they can
easily push themselves and succeed in business. Take risk: In order to become a successful entrepreneur a person should have ability to
take risk. This is an essential characteristics as taking risk is an important factor to
achieve success and without risk as person will able to accomplishing desired objectives
(Asongu and Tchamyou, 2016). Entrepreneur should be able to calculate risk as well as
profits for them after gaining success for risk. Passion: An entrepreneur should be passionate towards their work and have a desire to
accomplish desired objectives. Passion can be consider as a fuel for a successful
entrepreneur. Entrepreneur should have passion to create a business successful and attain
desired goals. Innovative: Innovation is a characteristics of a person which helps them in developing
new and creative product or services. This characteristics of a person will help in creating
such product that is useful in meeting with customers requirement. By developing
creative and innovation product and services business can achieve substantial amount of
profits.
Role of Entrepreneur
There are various important role of an entrepreneur which help in conducting business
activities in effective and efficient manner. Key roles of entrepreneur that lead to achieving goals
and objectives of entrepreneur is mention below.
Adhering to legal norms: Entrepreneur role is to ensure that adhere the legal norms and
policies so that they can conduct business activities smoothly. There are various rules and
regulation developed by government so it is important to correctly follow these rules in order to
achieve organisation goals.
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Forecasting: Entrepreneur have to forecast the need and want of customers as well as
market area so that they can develop more appropriate products as per customers requirement.
Forecasting role includes identifying businesses environment as well as various factors which
affect business activities (Burns, 2016).
Characteristics inherit by Alan Sugar
Alan Sugar is a British business magnate, media personality. He is the co-founder of
consumer electronics company Amstrad. Following are entrepreneurial characteristics which are
possessed by Alan Sugar: Humility: This is the prime quality which Alan Sugar possess in order to carry out
business related activities with full potential and accomplish the targeted goal in such a
manner so that consistency is seen. Each and every business related situation by Alan
Sugar were handled effectively due to which he has reached this position. Ability to think before speaking: He possess the ability to effectively observe each and
every business related aspects in such a manner that positive within business environment
is witnessed.
 Intelligence: All the major business related decision taken by Alan Sugar are essentially
taken keeping in mind the needs and condition prevailing in potential market. This
characteristics effectively him in carrying out the business administration in such a
manner so that consistency is accurately witnessed (Campbell and Carayannis, 2016).
Major decision regarding the respective organisation are so innovative in nature which
tends to accomplish all major goals and objectives.
 Ability to build up positive working environment: Alan Sugar is full capacity to
effectively built up positive working relationship so that consistency as well as
sustainability within business organisation is potentially observed. Implementation of
various organisational policies are carried by Alan sugar so that employees at work feel
secure and they tend to work with full efficiency.
 Effective communication skills: Alan Sugar essentially possess effective
communication skills through which each and every information with respective business
organisation are circulated properly and business tend to accomplish desired business
positive. Effective communication skills plays a very curial through which all the major
business related activities are accurately carried out.
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However, there are variety of other essential characteristics which Alan Sugar possess in order to
carry out each and business related activities effectively. All these characteristics extensively
help the respective entrepreneur to reach at the position were he is right now. Moreover, all the
major business related decision are taken by Alan Sugar by effectively implemented variety of
market strategies so that desired business objectives are achieved.
Characteristics inherit by James Dyson :
James Dyson is a British inventor and the co-founder of Dyson Ltd. He was delayed as
one of the best known inventor of the dual technology based cyclone bag-less vacuum cleaner,
which extensively works on the principle of cyclonic separation. Following the keys skills which
are possessed by James Dyson in order to carry out business related activities with full potential:
 Creative and Innovative: James Dyson is a very creative and innovative entrepreneur
who have inventor the most efficient vacuum clearer. All the business related ideas and
invention are effectively different in nature which to aid to make him extensively
successful. This the major skills which have help James Dyson to carry out all business
related activities appropriately (Cécora, 2019).
 Willingness to take risk: James Dyson have full capability to handle risk which can be
witnessed while introducing new technology in potential market. Furthermore, this skills
help him to take several types of business related decision. Playing on the safe side never
leads to success however, there are situation wherein risky taking becomes necessary.
 Great Salesmanship: James Dyson possess the quality of being a great salesmanship
which essentially helps in accomplishing business related decision effectively
(Dubravska and et.al., 2015). The product introduce by James Dyson is utterly brilliant in
nature, due to which targeted customers are easily attracted and desired business
objectives are essentially achieved. Appropriate business strategy is adopted by James
Dyson in order to generate desired amount of profits.
 Passionate: James Dyson is a passionate entrepreneur. Passion is nothing which
extensively help an individual to gain up motivation and drive him/her to gain desired
objective effectively. Passion is effectively considered as the fuel for successful
entrepreneurship. James Dyson aids to carry out all the major business related activities
with passion so that vision and mission are accomplished appropriately.
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 Flexible: James Dyson inherit the quality of being flexible in nature. Through this he aids
to carry out business related activities according to the situation which the respective
organisation possess.
However, there several other major skills which James Dyson possess in order to appropriately
carry out all the business related activities. All the factors extensively help in reaching the
desired position in potential market (Epifanova and et.al., 2015). Furthermore, an entrepreneur
before coming up with a particular idea in market, shall effectively conduct a proper research so
that major business related decision are taking according to the conditions.
2. Critically evaluate how Entrepreneurs have contributed to the UK ECONOMY
Within UK economy entrepreneurs enormously contribute and growth is essentially
witnessed. Entrepreneurs have essentially contributed to scale up their operations and have aid to
increase variety of employment opportunities within UK. The major contribution of entrepreneur
to UK economy includes the following factors:
 Enhance Productivity: UK Entrepreneur have extensively helped the economy in
enhancing overall productivity of the respective country. Entrepreneur primarily invents
variety of new technology through which more and more sales is increased and overall
productivity tends to show a positive shift (Gevrenova, 2015). With enhancement in
overall competition, entrepreneurs make use of variety of business related strategies
through which improvement in business operations is witnessed. All this often result in
increasing productivity which positively enhances gross domestic product and leads to
essentially benefit economic development.
 Increased Competition: This is also considered as positive factors which enormously
impacts entrepreneurship and economic developed with UK. New entrepreneurs within
economy regularly enters the potential market through which revenue is increased and
economy is positively enhance. It can be observed that from this only market saturation
can be witnessed but actually through enhancement in competition, the existing players
tends to re-evaluate their operational capabilities, lower down the cost in order to become
efficient. This process aids to reduce competition of monopolies in potential market
which is beneficial of customers as well as economy as a whole.
 New Markets: Competition essentially aids to cause market saturation due to which
many entrepreneurs seek to enter new market for their potential goods and services and
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adopt market penetration tactics. Such phenomena increases competition and positive
impact on the economy is witnessed. Therefore, entrepreneurs are considered important
within economy.
Figure 1 Market Growth
Sources: Economic Outlook for Madagascar: Sustained Growth Needs to be More Inclusive to
Benefit the Poorest, 2019.
 Entrepreneurs encourages structural change: Existing firm within business essentially
struggle within new market conditions and the permanent changing business
environment. Such factors essentially aids them in implement variety of business related
strategies through which economic growth is witnessed.
 Job Creation: One of the prime reason individual tend to become entrepreneur is
because they are not able to find suitable jobs (Jiménez and et.al., 2015). Due to which
they essentially come up with creative ideas in order to generate income for themselves
and to employ other individuals. Variety of job opportunities for people living within UK
is created through which positive shift within UK economy is witnessed. Furthermore,
job creation essentially helps in decreasing the unemployment rate within UK economy
effectively.
 Entrepreneurs add to National Income: Entrepreneurial ventures extensively help to
generate new wealth. Existing businesses essentially aids to remain confined to existing
markets and essentially hit glass ceiling in terms of income (Kyrö, 2015). However, new
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and improved products, services and technology significantly enable business
entrepreneurs to enter new market and develop new wealth.
 Foreign Exchange Earnings: They are variety of businesses which produces goods and
services not only to meet domestic requirements but they exports these products and
services to earn valuable amount of foreign exchange for the country. Such activities
essentially add up to economy growth as a whole.
 Eradicating Poverty: Entrepreneurial activities extensively helps in generating huge
amount of employment opportunities which directly help government of respective
country to eradicate unemployment and poverty in the economy. Generation of more
income helps people to afford better things (Mack and Qian, 2016).
However, from the above analysis it can be concluded that entrepreneur within an economy
plays a very curial role in generating reasonable amount of economy wealth from individuals as
well as economy as a whole. Additionally, increased employment and higher earning extensively
contribute to generate better national income through higher tax revenue and greater government
spending. Dyson Group have extensively help in creating variety of employment opportunities
through which national growth within respective economy is observed. The respective
organisation have employed several workers and aids to benefit society as a whole. Furthermore,
Dyson group have also help UK economy to attain variety of economy benefits through foreign
exchange activities. Moreover, with respect to Amstrad, company is an electronics based
organisation which have provided employment opportunities to engineers and have enhance
economic development. Furthermore, entrepreneurial activities also help business organisation
to provide services and products according to the demand of the country. Creation of wealth for
individual as well as country is also witnessed through entrepreneurial activities. Both of the
selected entrepreneur's organisations adds up to economic growth, this primarily includes traits,
cultural and institutional factors (O'Neill and Gibbs, 2016).
3. Critically evaluate how the UK has contributed to Entrepreneurship
Contribution of government and political party is very important for achieving success in
business. Entrepreneurship play a crucial role in growth and development of a country as well as
help in enhancing economic growth. For conducting business activities in effective and efficient
manner, entrepreneurship have to follow all rules and regulation set by government party. It is
essential that government support entrepreneurship and encourage entrepreneur which lead to
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growth of business. The government of UK has pledged to support and contribute to continues
promotion of start ups as well as small business. Starting a new business with innovative and
creative services is very challenging. So support from government is very essential. Contribute
of UK in growth and development of Entrepreneurship is mention below.
GOV.UK websites: This is very helpful website as it provide information as well as
guidance to entrepreneur who wants to start new business. GOV.UK is considered as a single
point where a person can access all government services and information that is very helpful for
an entrepreneur. It includes statutory rights and obligations which are necessary for business
finance and support finder. This is an interactive tool which help in searching sector, business
size, location, business stages and so on. This website is developed with the motive of providing
information about the employing people, money and tax as well as business and self
employment. Through this all the major business related activities of Amstrad and Dyson group
is essentially made clear. These websites aids to highlight each and every major policies which
the government has introduced in order to protect the rights of employer and employees.
National business support helpline: This is a helpline which provide support to
entrepreneur and it is a key element of government in order to provide support to entrepreneurs.
National business support helpline is a helpful in supporting diagnostic as well as improvement
in business guidance. This provide support to pre start, start ups and existing businesses (Prieger
and et.al., 2016). This is government implemented policies wherein they aid to provide variety of
services to entrepreneurs so that they potentially carry business related activities with full
potentially. However, this policy is essentially benefited for small skills entrepreneurs.
Financial support: The government of UK is providing support entrepreneur business by
providing financial support. Finance is a key factor that is very important to conduct business
activates in effective and efficient manner. UK government is supporting entrepreneur business
by providing loans to Start up loans, investment as well as new enterprise allowance. Start up
loan company is a British Business bank subsidiary and funds loans up to £25,000 (A guide to
government support for small businesses, 2019). This scheme has supported more than 50,000
business and they have provided £350 million worth of loans.
Training: This element support entrepreneur and their business to improve the quality of
apprenticeships. Training will help in enhancing quality of work as well as improve the
performance of business. The National Apprenticeship services is helpful in giving advice to
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entrepreneur on they can apprentice employees and improve their work efficiencies. By using the
find apprenticeship training services in business it will help in providing approved apprenticeship
training (Sakand et.al., 2018).
Tax reliefs: Government of UK is supporting entrepreneurship by offering tax relief
support to employees. This schemes is reducing the tax liabilities to small business and start ups.
Major tax reliefs which are provided by the UK government to entrepreneur are annual
investment allowances, capital allowances, creative industry tax reliefs, employment allowances,
entrepreneur's reliefs, patents box and R&D tax credits.
With respect to Dyson Group and Amstrad there are variety of government factors which
have enormously impacted the business operation of these organisation in positive as well as in
negative manner. Entrepreneur of both these organisation extensively adopts each of the
government based policies in such a manner so that they tend to accomplish the desired business
objective.
CONCLUSION
From the above report it can be concluded that entrepreneurs within an economy plays a
very important role. They are considered as main source of revenue generator. Variety of
functions as well as roles are performed by entrepreneurs so that they tend to achieved business
opportunities in such a manner consistency as well as sustainability is observed. Entrepreneurs
essentially contribute UK economy to great extent. Major entrepreneurial activities which helps
in enhancement of economy growth includes several business related aspects. They aid to
enhance overall productivity of country, generate variety of employment opportunities, enhances
organisational structure, increases business competition, eradicating poverty and several others
such activities. Within UK small businesses makes up a huge significant contribution for UK
economy. Government of respective organisation has intervened variety of business related
policies through which the efficiency of entrepreneur is increased and they tend to work with full
potential. All the entrepreneurial activities extensively helps in creating variety of employment
opportunities for the people living in UK and aids to decrease the overall rate of unemployment.
Moreover, job creations through entrepreneurial activities also helps in economic development
and national income is generated. Entrepreneurs within economy plays a very curial through
which consistency is witnessed.
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Furthermore, there are variety of factors through which entrepreneurial activities are
supported by government which aid to benefit both. These policies are essentially introduce to
protect the rights of employers as well as employee in such a manner so that desired business
objectives are achieved. Government policies also plays a very curial role in carrying out all the
business activities. This is essentially because all the major business related decision are made
after considering the rules and regulation of government. Moreover, contribution of government
as well as political parties extensively contribute to the economic growth because they tend to
invent several policies. The government of UK has pledged to support and contribute start ups
and existing business organisation in such a manner so that desired business objectives are
accomplished. Variety of policies are essentially invented to support entrepreneurial activities.
They have introduce a website namely gov.uk which aids to highlight necessary policies with
regard entrepreneurial activities. Financial support wherein government tends to provide variety
of financial benefits to entrepreneurs so that they can carry out business operations. They have
also introduced variety of policies through which tax relief is witnessed. However, with respect
to the two selected entrepreneurs their overall business related activities are enormously affected
by government implemented policies in negative as well as positive. Both the entrepreneur have
potentially become successful in potential market because they inherit variety of qualities which
aids to distinguish them with others.
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REFERENCES
Books & Journals
Ács, Z.J., Szerb, L. and Autio, E., 2016. Global entrepreneurship and development index
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Afolabi, A., 2015. The effect of entrepreneurship on economy growth and development in
Nigeria. The Effect of Entrepreneurship on Economy Growth and Development in
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Asongu, S.A. and Tchamyou, V.S., 2016. The impact of entrepreneurship on knowledge
economy in Africa. Journal of Entrepreneurship in Emerging Economies. 8(1). pp.101-
131.
Burns, P., 2016. Entrepreneurship and small business. Palgrave Macmillan Limited.
Campbell, D.F. and Carayannis, E.G., 2016. The academic firm: a new design and redesign
proposition for entrepreneurship in innovation-driven knowledge economy. Journal of
Innovation and Entrepreneurship. 5(1). p.12.
Cécora, J., 2019. Cultivating grass-roots for regional development in a globalising economy:
innovation and entrepreneurship in organised markets. Routledge.
Dubravska, M. and et.al., 2015. Internationalization of entrepreneurship-Motivating factors:
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Epifanova, T.V. and et.al., 2015. Modernization of institutional environment of entrepreneurship
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Gevrenova, T., 2015. Nature and characteristics of green entrepreneurship. Trakia Journal of
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Jiménez, A. and et.al., 2015. The impact of educational levels on formal and informal
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Elgar Publishing.
Mack, E.A. and Qian, H. eds., 2016. Geographies of entrepreneurship. Routledge.
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Thurman, P.W., 2016. Entrepreneurship and sustainability: business solutions for poverty
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perspective: Global returnees. Edward Elgar Publishing.
Yang, K., 2016. Entrepreneurship in China. Routledge.
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Online
A guide to government support for small businesses. 2019. [Online]. Available
through:<https://thepitch.uk/government-support-for-small-businesses/>.
Economic Outlook for Madagascar: Sustained Growth Needs to be More Inclusive to Benefit the
Poorest. 2019. [Online]. Available through:<
https://www.worldbank.org/en/country/madagascar/publication/madagascar-economic-
update-fostering-financial-inclusion>.
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