Case Study: Entrepreneurship and Economic Development - MD4044

This report critically examines the role of entrepreneurship in fostering a strong economy, focusing on the contributions and challenges faced by entrepreneurs. The report uses case studies of Sir Richard Branson and James Dyson to illustrate key concepts. It analyzes the difficult decisions, ethical challenges, and legal disputes encountered by these entrepreneurs. The discussion includes Branson's ventures and ethical lapses, Dyson's innovation and business ethics, and the broader implications of entrepreneurship on economic development, including the disruptive nature of businesses and the importance of ethical considerations. The report also explores the role of entrepreneurs in creating new opportunities and shaping societal change.

Running head: ENTREPRENEURSHIP
Case Study of two Entrepreneurs: Sir Richard Branson and James Dyson
Name of the student:
Name of the university:
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Executive summary
This report mainly focusses on understanding whether entrepreneurship has a strong impact on
economic development. It also covers the problems, challenges, and ethical issues being faced by
entrepreneurs. It does so by discussing two case study entrepreneurs, Sir Richard Branson and
James Dyson. These entrepreneurs are being discussed in this report from several aspects of
entrepreneurship like the selection of difficult decisions, handling legal disputes, and the ethical
challenges.

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Table of Contents
A study background:........................................................................................................................3
1. A critical discussion on the role of entrepreneurship with regards to creating a strong economy
.........................................................................................................................................................3
2. A critical analysis of entrepreneurs.............................................................................................5
A. a difficult decision they have made........................................................................................5
B. an ethical challenge they encountered....................................................................................7
C. a legal dispute they faced........................................................................................................8
Conclusion.......................................................................................................................................9
References......................................................................................................................................11

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A study background:
The report tries to understand whether entrepreneurship and entrepreneurs are essential
for economic growth. The purpose is being served by answering this query with references from
trusted secondary resources. In addition to this, the rest of the questions as mentioned in this
report that also helps to understand the upraised query as above is being answered in reference to
two successful UK-based entrepreneurs. They are Sir Richard Branson and James Dyson. Sir
Richard Branson is the founder of Virgin (Niphadkar 2017). James Dyson is a British industrial
design engineer, inventor, and Dyson's company founder (Business Advice 2019).
1. A critical discussion on the role of entrepreneurship with regards to creating a strong
economy
Entrepreneurship plays a very critical role in the economic development of a country. In
fact, most countries became globally popularised when these countries were able to identify and
nurture its hidden talents largely in the form of business entrepreneurs. These countries, later on,
moved to the accessible open economies. With regards to the modern economy, the role of
entrepreneurship is significantly higher. However, entrepreneurship is a debatable topic and
attracts diverse views of economists, citizens, political leaders, business leaders, and
policymakers. On a broader note, entrepreneurship promotes inequality in the economy (Harvard
Business Review 2019). Entrepreneurs use their minds to enter into new markets and generate
huge wealth. The earnings sometimes happen to be very quickly while over decades in many
cases. In their journey to success, entrepreneurs reward risk-tolerant and smart investors for their
efforts to generate extraordinary financial returns. Notably, entrepreneurs can be classified into
many categories while disruptive entrepreneurs are the most successful of them. The word

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“disruptive” is doing magic these days. Some words related to disruptive have become common
the heard phrases these days. Some of the examples are (Harvard Business Review, 2019):
 Disruptive business model
 A disruptive technology to disrupt the market
 Bookstores and many other retail chains are being disrupted by Amazon
 Car rentals by Zipcar
 Netflix is in a process of disrupting cable companies and cinemas
 Airbnb is largely disrupting the hotels
 Bitcoin is in a process to disrupt the payment industry
Interestingly, the meaning of disruptive was never believed to be positive and meant to be pure.
In fact, its synonyms include “disturbing”, “unsettling”, “disorderly”, “upsetting”, and
“troublemaking”. With regards to all the hypes surrounding disruptive innovation such as a key
to business success in the recent past, these original meanings should never be forgotten.
Llopis et al. (2015) differ from the above-mentioned view of entrepreneurship and say
that entrepreneurs are the wheel of economic development. Entrepreneurs provide a significant
and valuable contribution to the national economy. They create opportunities for the citizen of a
country. They play a major role in increasing the national income. They functionally coordinate
several production sources. Baldacchino et al. (2015) argue the facts as stated by Llopis et al.
(2015) by claiming that entrepreneurial success is broadly uneven. The success rate is as lower as
to one or two percent. Entrepreneurship, in fact, is just about being the best of the best. It is about
crossing every single hurdle to win a gold medal in the Olympics of the enterprise. It is more
specifically about leaving competitors in the dust.

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According to Rawhouser, Cummings and Newbert (2019), entrepreneurs are helpful and
significantly responsible for social changes that are acceptable to society. With the growing
existence of entrepreneurs, the traditional systems are getting uprooted and are giving place to a
largely acceptable scientific attitude. Hence, entrepreneurs lead to a new society, which is
progressive. Society of the mentioned kind adopts new technologies, establishes new business
ventures, produce new commodities, build a new environment, and generate new opportunities
for employment. Ndhlovu and Ndinda (2017) argue the fact as presented by Rawhouser,
Cummings and Newbert (2019) by saying that successful entrepreneurs can also become reasons
for increased taxes, unaffordable housing, and increased cost of personal services. Entrepreneurs
can displace loyal and legacy suppliers. They can also cause good people to lose their works.
They are also known as a group of people who organises and disorganises supply chains. They
can also deplete the wealth of shareholders who once belonged to deposed market leaders.
2. A critical analysis of entrepreneurs
A. a difficult decision they have made
Sir Richard Branson
Sir Richard Branson is known for taking calculated risks as it is evident from several
instances of risky decisions being made by the entrepreneur. Some of these instances are
“Launching Virgin Atlantic”, “Taking on Coca-Cola”, and “Selling Virgin Records”. In this
section, “Taking on Coca-Cola” would be taken as one of the difficult decisions being made by
the entrepreneur. The risk, which Richard Branson took by launching Virgin Cola in 1994 did
not pay off. It though made headlines for driving a tank through New York’s streets to smash a
wall of Coca-Cola cans. However, it was eventually considered a foolish act from the

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entrepreneur. The reason behind taking up the risk was the fame that Virgin carries for being a
disruptor brand. Riding on the success with the airlines and the music industry, Richard thought
of creating similar success with Virgin Cola. However, it got failed. The entrepreneur realised
that people already had the drink in the form of Coca-Cola, which suited both of their preference
for taste and money (The Independent 2019).
According to Sir Richard Branson, Virgin Cola was a big mistake considering that people
already had the option in Coca-Cola. There is no point of stepping into an industry, which is
preoccupied with a major player like Coca-Cola. This fact is contradicting to what is being said
by Karimi and Walter (2016). According to Karimi and Walter (2016), entrepreneurs are a
disruptor and disruptive entrepreneurship is the best of all kinds of entrepreneurship. Moreover,
disruptive entrepreneurship should never be referred to a mistake being committed.
James Dyson
Sir James Dyson’s life is full of problems and risks. However, James Dyson carries an
image of an entrepreneur who loves taking the risks. The decision to roll out a business in the
cleaning industry does not look so fascinating considering that engineers generally do not prefer
their career in the cleaning industry. However, James Dyson had the guts and motivation to go
against the tide. Being a professional engineer, James Dyson had enough motivation in him to
nurture his business in the cleaning industry. The entrepreneur already knew that the industry is
fiercely competitive (BBC 2019). The rest is history. Dyson is today a billionaire, the feat being
achieved with its imaginative vacuum cleaner reworking (BBC, 2019).
As argued by Packard and Bylund (2018), only a small percentage of entrepreneurs do
only succeed. James Dyson is considered one of the most successful entrepreneurs in Britain.

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However, it also faced failures throughout its long-career haul. For example, the CR01 washing
machine was a failure and was discontinued later on. The production cost was uncontrollable and
hence, had to be closed.
B. an ethical challenge they encountered
Sir Richard Branson
Sir Richard Branson has failed to fulfill his commitment to spend $3bn (£1.8bn) over a
period of a decade to reduce its carbon footprint impact. The entrepreneur has committed to
develop and promote a low carbon fuel. This news is being reported in “The Guardian”
newspaper published on 13th September 2014 (the Guardian 2019). Till the time the report was
published in the Guardian, Richard Branson had reportedly failed to pay the committed amount.
The entrepreneur just paid a close to one-tenth of the entire committed amount (the Guardian
2019). On the other hand, Richard Branson claims that Virgin has already been involved in so
many clean technology projects. The company has already invested heavily for no such heavy
returns. According to the entrepreneur, these allegations against him are unjustifiable (the
Guardian 2019).
According to the “triple bottom line approach”, a business should have positive impacts
on the community, environment, and people (McWilliams et al. 2016). This is the only way how
business sustainability can be attained. Employers in various parts of the world are increasingly
getting involved in environmental wellbeing. For example, Ford Motor Company is constantly
involved in a range of practices that support environmental wellbeing. Automotive companies
are known as heavy polluters; however, Ford is changing that narrative. The use of sustainable
fabrics in vehicles, recycling policy for 80% of the Escape and Focus vehicles, use of efficient

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fuel technology, and the recyclable paint fumes present a few of examples of environmental
initiatives being adopted by Ford (Norcalcompactors 2019).
James Dyson
Unlike Sir Richard Branson, James Dyson is a great inventor of fake facts. According to
James Dyson, Europe is the slowest growing region at the worldwide level. However, this is
untrue. According to the IMF forecasts, EU will grow at 2.3% (InFacts 2019). This figure is well
ahead of Japan, South America, and the Middle East. The forecasted growth is even slightly
more than the United States. Interestingly, if the slow-growing UK can be excluded from the EU
list of nations, the growth in Europe will be even faster (InFacts 2019). James Dyson also has
fake views of Brexit impact on the car industry. According to the entrepreneur, the supply chain
will have no issue whatsoever. It is because the supply chain is duty-free. This is not true also.
The average tariff on exports of car components to the EU is 4.5% (InFacts 2019). Additionally,
the supply chain is not just about the duties. Paperwork and extra customs checks at the border
could affect the efficiency of “just-in-time” production methods of manufacturers (InFacts 2019).
The set of information as furnished in the above-paragraph suggests that there are ethical
issues in the leadership of James Dyson. The entrepreneur is often and so being criticised for his
views on business ethics.
C. a legal dispute they faced
Sir Richard Branson
Richard Branson has decided to take legal action against the government for awarding the
West Coast mainline contract to some other company. According to Richard Branson, the party
that is awarded the project does lack the capability to effectively handle this project. He further

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adds that Virgin could have worked on the project on a non-profit basis till the moment the MPs
are returned (Telegraph.co.uk 2019). Transport Secretary Justine Greening reacted to it and said
that this would have been a perfect decision to award Virgin with the project. She supported the
claims made by the entrepreneur, Sir Richard Branson (Telegraph.co.uk 2019). However, the
FirstGroup, which was awarded the project confirms that it has every possible resource to
effectively commence this project. According to the FirstGroup, the project is very clear and
precise, and the company is sure of succeeding with the project (Telegraph.co.uk 2019).
James Dyson
Dyson has faced a blow at Europe’s highest court in succession. The legal dispute
between the EU court and Dyson was over vacuum cleaner energy labels. Dyson’s company is
trying to sue Bosch-Siemens, which is its German-based rival company. According to Dyson,
Bosch-Siemens is doing excessive publicity of its vacuum cleaners and is trying to prove that its
vacuum cleaners are the best. However, according to Dyson, the vacuum cleaners of Bosch-
Siemens will definitely fail the energy label test. These cleaners are not as powerful as compared
with the Dyson’s. On the other hand, the highest EU court is constantly confirming that EU rules
for energy labelling do not allow extra information. Dyson did not stop and took this matter up to
the European Court of Justice (ECJ). The purpose of the visit to the ECJ was to clear up the law.
Despite so much of efforts from Dyson, the court hangs on with the same words that EU energy
labelling rules do not allow the extra information.
Conclusion
Therefore, this can be said that entrepreneurship is a debatable topic. It promotes
economic development; however, it also encourages economic inequality. It was also being

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found that only a few entrepreneurs do only succeed with their ventures. Facing legal and ethical
challenges is a part of the entrepreneurial venture. It all depends on the capability of the
entrepreneur to deal with such situations. Both Sir Richard Branson and James Dyson are great
entrepreneurs. However, Sir Richard Branson is a not so common and entrepreneurial example
of a non-strategising leadership. On the other hand, James Dyson is a one industry man.

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References
Baldacchino, L., Ucbasaran, D., Cabantous, L. and Lockett, A., 2015. Entrepreneurship research
on intuition: A critical analysis and research agenda. International Journal of Management
Reviews, 17(2), pp.212-231.
BBC 2019. Frustration and failure fuel Dyson's success. [online] Bbc.com. Available at:
http://www.bbc.com/future/story/20130312-failure-is-the-best-medicine [Accessed 10 Jan.
2019].
Business Advice 2019. A lesson in innovation from James Dyson. [online] Business Advice.
Available at: https://businessadvice.co.uk/from-the-top/a-lesson-in-innovation-from-james-
dyson-the-inventor/ [Accessed 10 Jan. 2019].
Harvard Business Review 2019. Entrepreneurship Always Leads to Inequality. [online] Harvard
Business Review. Available at: https://hbr.org/2014/03/entrepreneurship-always-leads-to-
inequality [Accessed 10 Jan. 2019].
InFacts 2019. James Dyson is great inventor - of fake facts. [online] InFacts. Available at:
https://infacts.org/james-dyson-great-inventor-fake-facts/ [Accessed 10 Jan. 2019].
Karimi, J. and Walter, Z., 2016. Corporate entrepreneurship, disruptive business model
innovation adoption, and its performance: the case of the newspaper industry. Long Range
Planning, 49(3), pp.342-360.
Llopis, J.A.S., Millán, J.M., Baptista, R., Burke, A., Parker, S.C. and Thurik, R., 2015. Good
times, bad times: entrepreneurship and the business cycle. International Entrepreneurship and
Management Journal, 11(2), pp.243-251.