Entrepreneurship in Business: UK Economy and Entrepreneurs' Roles

This essay delves into the realm of entrepreneurship, examining its core characteristics and the pivotal roles entrepreneurs play within the business landscape. It highlights the contributions of entrepreneurs like Alan Sugar and James Dyson to the UK economy, focusing on innovation, job creation, and increased productivity. The essay also explores the ways in which the UK has fostered entrepreneurial development, providing a comprehensive understanding of the symbiotic relationship between entrepreneurs and economic growth. Through case studies and analysis, it showcases the significance of entrepreneurship in driving social change and boosting living standards. This document, available on Desklib, serves as a valuable resource for students studying business and entrepreneurship, offering insights into real-world applications and economic impacts.

ENTREPRENEURSH
IP IN BUSINESS

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Characteristics and role of entrepreneurs.....................................................................................1
Ways entrepreneurs have contributed to UK economy...............................................................4
Ways UK has contributed in entrepreneurial development.........................................................8
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................12

INTRODUCTION
Entrepreneurship is willingness that entrepreneurs have for developing, arranging and
managing new venture of business through handling risks so to make huge earnings. It is an act
to build and scale the new business to generate profits (Bennett, 2014). It is an attitude of people
in which they work hard, applies their mindset and ideas properly, completely dedicated towards
their ideas, constantly pay attentions towards changes goings within their surroundings, convince
others with their thoughts and puts best efforts to gain effective results. Entrepreneurs seeks
opportunities of investment and production so to create addition to manage the venture by
undertaking production function, composing inputs such as labour, material, capital for
introducing techniques and identifying potential sources for the new entity. Entrepreneurship is
characterised as an economic activity, bearing risk, discovering innovation and creativity and
making profits (Blackburn, Hart and Wainwright, 2013). Within entrepreneurs, various skills are
required such as business management skills, technical skills and personal skills with the help of
which all the activities are properly execution of entrepreneurial activities. In present era,
entrepreneurship is considered as an essential concept that bridges gap among innovation and
market as when new venture is formed, innovative products are bought to market. The products
that are created by entrepreneurs have ability to develop the economy of a nation. It helps people
in following their passion that leads them to gain good outcomes for themselves as well as for
society. To understand entrepreneurship in business, James Dyson and Alan Sugar are selected.
This essay includes information about characteristics and roles of entrepreneurs, ways
entrepreneurs have contributed towards economy of UK and the ways UK has made
contributions to entrepreneurship.
MAIN BODY
Characteristics and role of entrepreneurs
Entrepreneur is an individual who starts own business by seeing new opportunities in the
market. Entrepreneurs willingly takes risks for making money and uses innovations so to
improve life quality, creating new jobs, makes improvements in position within international
economic competition, builds wealth for purposes of reinvestment and creates economic growth
(Bolton and Thompson, 2013). Successful entrepreneurs posses characteristics of taking risks,
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knows ways to networking, flexible, passion, understands what to offer and self motivation.
They have roles of initiator, allocator, forecaster, risk taker, developer and many more.
Alan Sugar:
Alan Michael Sugar was born at East London, United Kingdom on March 24, 1947. Alan
has British nationality and is known as politician, political adviser, British business magnate and
media celebrity. Upbringing of such personality were done into Jewesh family in which the
father of Alan was tailor in one of garment industry (Bridge and O'Neill, 2012). Alan went to
Northwold Primary School as well as Brooke House Secondary School and used to make money
by working at greengrocers. Alan started working in the teenager age where the personality
began selling radio aerials as well as electrical goods. In the year 1968, Alan took initiating for a
venture that later became largest business venture to deal with consumer electronics and was
named as Amstrad. The personality also appeared in BBC TV series and many more which made
Alan a billionaire in 2015.
Characteristics of Alan Sugar
Alan sugar is a popular entrepreneur and business magnate who posses unique
characteristics. Some of the characteristics of such entrepreneur are as follows:
Creative: Entrepreneurship begins with creative idea. For becoming successful,
entrepreneurs needs to think new idea along with better ways for executing activities. Creativity
is necessary element which can not be learned and it plays crucial part in achieving success
(Brush, 2013). The characteristic of creativity helped Alan Sugar in beginning the venture with
the new concept of electronic business that was Amstrad wherein manufacturing of interactive
boxes was done which was not launched by any one else at that time. With this characteristic, the
entrepreneur always conceive ideas out of box as well as look for opportunities so that they
come with new solutions and gain competitive edge.
Flexible: The another characteristic that exists within entrepreneurs is flexibility. The
entrepreneur began its business as solopreneur in which they they works with their own ways
and are familiar with the ways to adapt unfamiliar situations. Entrepreneur like Alan Sugar is
always ready for adopting changes that are needed within procedures, practices and even
product. Such entrepreneur also makes various changes in its own thoughts or views as per the
pertaining circumstances so that effective solutions and uniqueness are found for the ongoing
issues.
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Roles of Alan Sugar
Resource allocator: Entrepreneur have roles to procure as well as allocate various
resources optimally (Burns and Dewhurst, 2016). They distributes all the resources within the
organisation so that all the tasks are performed smoothly without any hurdles. In context to Alan
Sugar, this entrepreneur have role of creating suitable organisational structure and then allocating
the required resources within all manpower so to carry out business activities towards achieving
set objectives.
Employment generator: Entrepreneurs have role to generate employment in direct or
indirect ways. Through direct ways, they offers effective ways for honourable addition to
independent life while in indirect ways, they sets business units to provide jobs to huge
population. Being an entrepreneur, Alan Sugar have role of generating employment to huge
number of population by setting business venture. Such personality creates wide employment
opportunities within the society they opens their factory premise.
James Dyson
Sir James Dyson is known as industrial designer, administrator, business magnate and
inventor. James took birth in the city of Cromer, Norfolk on May 2, 1947. James attended
Gresham's School and has great mind in innovation. The personality studied furniture as well as
interior design before moving in the field of engineering. In the year 1970, the personality had
idea to utilise cyclonic separation for creating the innovative vacuum cleaner and further made
decisions to manufacture other electronic products like hand dryers, hair dryers, electric vehicle
and many more.
Characteristics of James Dyson:
Some of the characteristics of James Dyson are as examined:
Future oriented: Successful entrepreneurs also have characteristic of future orienter as
they focuses more on moving forward (Chell and Karataş-Özkan, 2014). Entrepreneur works as
per the future needs and they perceive all the needs as the opportunities for the business. In
relevance with James Dyson, the personality has set the objectives for the venture of Dyson Ltd
and perform activities with the aim to accomplish all the goals.
Passionate: It is the most important characteristic of an entrepreneur as they have huge
level of energy to work with passion. Entrepreneurs deeply feel for the use of products and their
benefits to the society. James Dyson with the passion characteristic invent vacuum cleaner that
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drives the idea towards success. Passion acts as fuel for the entrepreneur and helps them in
developing the business better.
Role of James Dyson:
Forecaster: In present era, entrepreneurs have role to act as forecaster. They works in the
business environment that is dynamic in nature and is affected by number of changes occurring.
As an entrepreneur, James Dyson have role of correctly forecasting the pertaining changes as
well as preparing the entity so that they can effectively deal with changes (Franz, Hochgerner
and Howaldt, 2012). To make decisions properly, selected entrepreneur have responsibility of
properly forecasting internal and external circumstances that are pertaining in the business.
Uplifting living standards: Entrepreneurs also perform role of uplifting living standards
within business and society. They have role to innovate new products and distribute them in the
society so that living standards are uplifted. James Dyson through innovative behaviour performs
role of uplifting living standards by delivering the required electronic products according to the
demand at reasonable prices.
Ways entrepreneurs have contributed to UK economy.
Entrepreneur is the person who innovate or create something through analysing the customers as
well as market demand. They are the innovator who generate new ideas for products & services
which provide them huge success. Entrepreneurs are most important assets for the country who
contribute in the economy or provide growth (Entrepreneur contribution in the UK's economy,
2019). There are some elements which define that how entrepreneur contribute in the UK's
economy and it discussed below:
Innovation: Entrepreneur contribute through innovating something new regarding
products & services. They find cheap market and provide solutions in order to maximise the
profit margin. With the help of innovation, individual get the huge success and popularity in the
market. For example: Alan Sugar is the great innovator who made electronic products and
contributed in the consumer electronic industry and now it become a popular computer brand
known as Amstrad. They contributed in the economy through generating huge revenue from their
operational activities (Innovation in the UK, 2019). Amstrad currently deals in various business
such as digital signage, property investment, executive aviation company and they achieve TV
star status because of the impressive performance in the BBC reality show called “The
Apprentice”. These kinds of innovation become the inspiration for other people so they motivate
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or create something innovating which provide them huge popularity and they contribute in the
economy.
Illustration 1: Innovation in the UK, 2019.
(Source: Innovation in the UK, 2019)
Job creation: One of the main reason is to become entrepreneur is that people unable to
find job so they think about their own start-up. So people find the niche market and create new
ideas which make then capable to get growth. Entrepreneurial development leads to generate job
because when any person create new idea so they need people for the implement of their ideas.
More entrepreneur which create more jobs in the economy which move the country towards
growth. In the UK, there are 40 to 50% individuals working in the small organizations or
generate revenue which contributed in the economy to get growth. In 1971, the employment rate
was 76.1% which is the highest one and unemployment decline by 1.34 million that is 35,000 in
the period of 1975 (Employment rate in UK, 2019). Due to increase in the entrepreneurship,
employment rate increased by 77,000 in the men categories that is recorded as 17.32 million in
2014. On the other hand, women are recorded 144,000 as high of 15.40 million employment in
the duration of 2014. Increases in the entrepreneurship will generate the jobs or reduce the
unemployment as well as it create great opportunity for the women as well to grow.
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Illustration 2: Employment rate in UK, 2019.
(Source: Employment rate in UK, 2019)
Increased competition: When number of entrepreneur increases which directly
maximise the competition because they come with the innovating ideas which helps in increasing
profitability of the organizations. Increase in the competition is the positive impact on UK's
economy because it motivate people to become entrepreneur and contribute in the market in
order to achieve growth as well as profit from their business. High competition force others to re-
evaluate their operations, capabilities etc. which generate value addition, lower costs and become
more efficient in the market (Hughes and Jennings, 2012). Competition reduce the monopoly in
the country which is beneficial for other and it encourage people to enter in the competition. It is
beneficial for the consumers as well as UK's economy through increasing competition.
Increased productivity: Increased competition also raise the productivity which is
beneficial for the economy. It helps in improving operational efficiency due to optimum
utilization of resources which reduce the overall costs and add the value for the consumers.
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These things helps in maximising overall productivity in the economy which increase the GDP
of UK. Entrepreneur contribute in the economy of UK through innovating new ideas which lead
the growth which further increases the competition as well as productivity which are beneficial
for the country. It will leads to generate employment opportunity which drive the economy
forward for the growth.
Entrepreneurs create social change: Through introducing new products & services in
the market they change the traditional culture regarding goods. It also reduce the dependency on
obsolete system as well as technology. It further helps in improving quality of life which is very
essential for the growth of UK's economy (Julien, 2018). For example: James Dyson innovate
the vacuum cleaners for the house cleaning purpose which reduce the efforts of people as well as
time which required at the time of cleaning plan by an individual physically. Innovation in the
electronic items will generate social change which break the traditional way of working. It will
provide the huge growth in the economy through improving quality of life of consumers.
From the above discussion entrepreneurship leads the changes which is beneficial for the
country as well as it enhance the economic growth of the UK.
Il
lustration 3: Entrepreneur contribution in the UK. 2019.
(Source: Entrepreneur contribution in the UK, 2019)
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Entrepreneur play vital role in the UK economy where total number of entrepreneur birth
from 2010 to 2016 around 78% which was 420000. Most of the business birth due to innovation
across the industry and use of latest technology which attract the consumers. All the large size
organizations such as Facebook, Google, Apply etc. are started as small business and then they
find huge growth because of their unique innovation and use of latest technology according to
the move of market (Entrepreneur contribution in the UK, 2019). UK enterprise continuously
increases with the help of innovative ideas or innovation in the products & services for the
consumers. Above mention graph represent that UK economy recover after financial crises of
2012. Consumer spending increases as well as business investment also increases which provide
the huge growth in the UK economy.
Ways UK has contributed in entrepreneurial development.
Entrepreneurship is very important for the UK economy, so government will take
necessary steps for the development of entrepreneurs of the country. Government carry out the
various policies as well as strategies to encourage people to become entrepreneur or contribute in
the economy for the benefit of country (Kelley, Singer and Herrington, 2012). Local community
ensure that every small organization perform well or in order to gain profit they provide various
training & skills development to enhance their performance in the organizations. Government of
UK regularly provide the incentives, subsidiaries, promotional schemes etc. These are discussed
below:
Incentives: It will encourage the individuals and maximise the productivity through
making correct decisions. Incentives can be financial or non financial which motivate the
entrepreneur to make important decisions regarding business operations which helps in
developing entrepreneur in the UK.
Subsidy: It is the amount which given by the government to the entrepreneur in order to
cover their operational cost. In order to promote entrepreneurs and for their development
government provide subsidy which encourage them to take initiatives and produce goods &
services (Schaltegger, Lüdeke-Freund and Hansen, 2016). Main purpose of subsidy is to motive
individual to set new venture or encourage their interest in the nation as well as in society.
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Grants: It is kind of financial helps which provided by the government to the
entrepreneur without any expectation for the return (Schumpeter, 2017). It is cost effective
method which helps in entrepreneurial development.
Above mention policies made by the government to encourage people to become
entrepreneur or start a new venture in order to earn profit which further beneficial for the entire
economy of UK as well.
Role of government agencies for the entrepreneurial development:
For the entrepreneurial development, government agencies plays essential role through
providing various facilities such as:
Technical assistance: UK government provide the technical training to the people in
order to make them skilled or capable to perform their task in well manner (Government
contribution for the Entrepreneurs development, 2019). UK government build a foundation for
entrepreneur development where they provide necessary skills in order to get valuable output.
New Entrepreneurs Foundation (NEF) has vision to transform entrepreneurs into good leaders
who can lead the market or contribute in the economy. This foundation provide various technical
skills to make people capable to perform well or achieve desired outcomes which is beneficial
for the economy of UK and provide them growth.
Financial assistance: Financial is the most important aspect for any organization, so
government will provide the financial assistance for the entrepreneurial development. Lack of
finance will create the issues at the time of performing operational activities. So UK's
government agencies provide the financial help or ensure that they able to achieve their goals.
Financial helps provided for the long term duration because entrepreneur required time to set up
their business and generate profit.
Government UK provide various assistance for the development of entrepreneurs which
directly beneficial for the economy and provide growth in the market. UK has strong records in
the entrepreneurial achievement which was the positive elements (Trimi and Berbegal-Mirabent,
2012). UK break their previous records and every year various new business ventures take birth.
With the help of Centre for Entrepreneurs and New Entrepreneurs Foundation (NEF) both are
done intense research, campaign and organize programmes to tackle the challenges which face
by the entrepreneur at the time of developing their business.
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CONCLUSION
As per the above discussion, it has been concluded that entrepreneurship is one of
procedure to find new aspects to combine resources. It is all about transforming the nations
through solving big problems by presenting suitable solutions in terms of valuable services and
commodities. The concept is more than starting new venture as it has wide scope towards
identifying opportunities, creating valuables and allocating resources. With entrepreneurship,
entrepreneurs identifies unmet needs through identifying various opportunities for changes.
Entrepreneurs are in verge for organising virtual project along with targeting usage of
antecedently unused channels after properly discovering hidden opportunities. In addition,
entrepreneurs perceives open door that other humans fails to perceive for concentrating on
unsatisfied demand as well as profound enhancement of current business execution. They
searches worth risking in context to finances specific project with hope to launch new venture
which will culminate all the activities into visible success. They have distinct characteristics
including creativity, flexible, passionate and future oriented that helps in initiating the venture
activities for earning profits. At same time, role of entrepreneurs are much significance towards
generating commodities that are valuable for comforts addition to luxurious livings.
Entrepreneurs plays role of resource allocator, employment generator, forecaster and uplifting
living standards. Entrepreneurs performs various activities which help them to make essential
contributions within economy of a nation.
An economy is much dependent on entrepreneurial performance level as they plays vital
role for growth and development of national income together with raising income of general
public. In context to economy of UK, entrepreneur's contribution have immense values as their
contributions through delivering product leads towards overall economic development. In this
regards, major contributions by entrepreneurs are made through unique innovations, creating
diverse jobs, enhancing competition level with other countries, increasing productivity and
creating social changes. In addition, the activities of entrepreneurs adds economic growth of the
nation. They brings economic development by combining production factors along with making
investments, generating employment opportunities, providing diverse products and promoting
international trade. In present scenario, for developing entrepreneurial spirit, UK has also made
various contributions such as the political system has made various foundations and centres.
Entrepreneurial powerhouses are also made with UK that provides advocacy services to
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entrepreneurs so that they can develop their skills, impactful campaigns, deliver original
researches as well as developmental programmes. In addition, various incentives, grants,
subsidies and other facilities are also provided by UK for entrepreneurial development. In
addition, government of the UK provide the various assistance such as technical, financial etc.
for the overall development of entrepreneur and they ensure that they does not face the issues
regarding finances or skilled people.
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REFERENCES
Books and Journals:
Bennett, R. J., 2014. Entrepreneurship, small business and public policy: Evolution and
revolution. Routledge.
Blackburn, R. A., Hart, M. and Wainwright, T., 2013. Small business performance: business,
strategy and owner-manager characteristics. Journal of small business and enterprise
development. 20(1). pp.8-27.
Bolton, B. and Thompson, J., 2013. Entrepreneurs: talent, temperament and opportunity.
Routledge.
Bridge, S. and O'Neill, K., 2012. Understanding enterprise: Entrepreneurship and small
business. Macmillan International Higher Education.
Brush, C., 2013. International entrepreneurship (RLE International Business): the effect of firm
age on motives for internationalization. Routledge.
Burns, P. and Dewhurst, J. eds., 2016. Small business and entrepreneurship. Macmillan
International Higher Education.
Chell, E. and Karataş-Özkan, M. eds., 2014. Handbook of research on small business and
entrepreneurship. Edward Elgar Publishing.
Franz, H. W., Hochgerner, J. and Howaldt, J. eds., 2012. Challenge social innovation: potentials
for business, social entrepreneurship, welfare and civil society. Springer Science &
Business Media.
Hughes, K. D. and Jennings, J. E. eds., 2012. Global women's entrepreneurship research:
diverse settings, questions, and approaches. Edward Elgar Publishing.
Julien, P. A., 2018. The state of the art in small business and entrepreneurship. Routledge.
Kelley, D. J., Singer, S. and Herrington, M., 2012. Global entrepreneurship monitor 2011 global
report. Global Entrepreneurship Research Association, London Business School.
Kelley, D. J., Singer, S. and Herrington, M., 2012. Global entrepreneurship monitor 2011 global
report. Global Entrepreneurship Research Association, London Business School.
Read, S., Sarasvathy, S., Dew, N. and Wiltbank, R., 2016. Effectual entrepreneurship.
Routledge.
Schaltegger, S., Lüdeke-Freund, F. and Hansen, E. G., 2016. Business models for sustainability:
A co-evolutionary analysis of sustainable entrepreneurship, innovation, and
transformation. Organization & Environment. 29(3). pp.264-289.
Schumpeter, J. A., 2017. Essays: on entrepreneurs, innovations, business cycles and the
evolution of capitalism. Routledge.
Sørensen, H. E., 2012. Business Development: a market-oriented perspective (Vol. 1, p. 26).
Chichester: Wiley.
Trimi, S. and Berbegal-Mirabent, J., 2012. Business model innovation in
entrepreneurship. International Entrepreneurship and Management Journal. 8(4).
pp.449-465.
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