The Contribution of Entrepreneurship in Improving UK Economic Growth

This dissertation explores the significant contribution of entrepreneurship to the economic growth of the United Kingdom. It begins with an introduction outlining the background, rationale, aims, objectives, and research questions, emphasizing the importance of entrepreneurship in job creation and innovation. The literature review delves into the concept of entrepreneurship within the UK context, analyzing its impact on economic growth and identifying strategies entrepreneurs can employ to further boost the economy. The methodology section details the research philosophy, approach, and methods used, including primary data collection through questionnaires and a quantitative approach to data analysis. The findings, analysis, and discussion chapter presents the results, while the conclusion summarizes the key insights. The dissertation also includes reflections and references, providing a comprehensive analysis of the topic and its implications for the UK's economic landscape.

Dissertation
(The contribution of entrepreneurship in improving
the economic growth of the UK)

Abstract
The present study is based on entrepreneurial practices and its significance in economic growth
of UK. Main aim of report is to analyze the concept of entrepreneurship in context of UK
environment. Further, it will also assess the role of entrepreneurial practices in economic growth
of the country. The report aims to analyze suitable ways to improve the entrepreneurial practices
in order to improve the economic growth of the respective nation. In addition, suitable
methodology has been used in the present project in terms of primary method of data collection
along with quantitative approach to analyze and evaluate the data further. Here, questionnaire
has been used to gather the information from respondents for successful completion of the
project. It is analyzed that entrepreneurship is an important aspect from the prospective of
economic growth & development. This is likely to contribute towards enhancement and
development of UK significantly.

Table of Contents
Chapter One: Introduction...........................................................................................................................4
Background of study................................................................................................................................4
Rational of report.....................................................................................................................................4
Research Aim:.........................................................................................................................................5
Research Objectives................................................................................................................................5
Research Questions.................................................................................................................................5
Methodology...........................................................................................................................................5
Report structure.......................................................................................................................................6
Chapter Two: Literature Review.................................................................................................................6
Introduction.............................................................................................................................................6
Concept of entrepreneurship in context of the UK...................................................................................7
Impact of entrepreneurship on economic growth of the UK....................................................................8
Ways that would be used by an entrepreneur for improving economic growth of the UK.....................10
Conclusion.............................................................................................................................................11
Chapter Three: Research Methodology.....................................................................................................12
Introduction...........................................................................................................................................12
Research Philosophy:............................................................................................................................12
Research Approach :..............................................................................................................................13
Research Method...................................................................................................................................13
Data collection method..........................................................................................................................14
Research inquiry method.......................................................................................................................14
Selection Criteria...................................................................................................................................15
Data Analysis:.......................................................................................................................................15
Research Ethics.....................................................................................................................................16
Validity & Reliability............................................................................................................................16
Chapter Four: Findings/ Analysis/ Discussion...........................................................................................16
Chapter Five: Conclusion..........................................................................................................................29
Reflection..................................................................................................................................................30
References.................................................................................................................................................32

Chapter One: Introduction
Background of study
In the present time, entrepreneurship is considered as a highly crucial activity to ensure
the economic growth by generating ample of job opportunities so that one can easily grow &
succeed. Basically, entrepreneurship is a practice to start, operate as well as run a new business
organization. It depicts the ability of entrepreneur to start a new business with an aim to earn
significant amount of profit. Generally, entrepreneurship is all about starting a new business by
bearing all the risks with an aim to make higher amount of profit. In the modern era,
entrepreneurship is considered as an activity to transform the world by resolving the issues.
Innovation is significantly associated with entrepreneurial activities (Werthes, Mauer and Brettel,
2017). Here, entrepreneur is a person who takes risk to start and run a new business. They are
likely to facilitate innovation so that the issues can be resolved in an efficient manner. Here,
entrepreneurial practices are considered highly crucial for the economic prospective as it creates
job opportunities. Entrepreneurs take risk to start a new venture where they do not only employ
themselves but also creates employment opportunities for others. Their ambition to start a new
business eventually helps in creating new jobs. With the growth of business, new jobs are also
likely to create (Malecki, 2018). In context of UK, the entrepreneurship is considered as highly
imperative to ensure the growth of the country. It is seen that United Kingdom has numerous
entrepreneurs who are likely to contributes towards the growth of the economy significantly. The
study is about role of entrepreneurial activities in enhancing the economic growth of UK.
Further, this will also help in examine how entrepreneurship affects economic growth of UK.
Moreover, ways to enhance the economic growth through entrepreneurial activities have also
been included in the given report.
Rational of report
The main aim of conducting the present project is to understand the significance of
entrepreneurship. The study is based on entrepreneurial practices and its significance from
economical prospective. It is found that entrepreneurship is highly important practice that also
contributes in economic growth as well. It is about creating, developing and organizing a new
venture which also helps in developing ample of job opportunities. In addition to this,

entrepreneurs start a new business so that they can earn higher amount of profit. Also, they are
likely to innovate new and updated ways to deal with the business problems significantly. In the
modern time, the main aim of entrepreneurs is to develop innovative ways with an aim to deal
with problems in profound manner (Farani, Karimi and Motaghed, 2017). The report is useful for
personal & professional growth of investigator. In terms of professional context, this will help in
developing different knowledge base such as communication, presentation, data research,
analysis and more. Further, the project report will also make the entrepreneur enable to grow
personally by developing various competencies and skills. These skills will further contribute in
enhancement of the overall personality of the researcher in profound manner.
Research Aim:
“To determine the contribution of entrepreneurship in improving economic growth of the UK”.
Research Objectives
 To develop basic understanding regarding the concept of entrepreneurship in context of
the UK.
 To examine the impact of entrepreneurship on economic growth of the UK.
 To investigate the ways that would be used by an entrepreneur for improving economic
growth of the UK.
Research Questions
 What is the basic understanding regarding the concept of entrepreneurship in context of
the UK?
 What is the impact of entrepreneurship on economic growth of the UK?
 What are the ways that would be used by an entrepreneur for improving economic growth
of the UK?
Methodology
To complete a project report successfully, it is important to follow an appropriate
methodology. By following a suitable methodology, it is possible to get authentic and valuable
results that will prove helpful in successful completion of the research project. The present
project is based on suitable methodology including various components like research philosophy,
approach, strategy, choice, method of data collection, ethical consideration and more. In present

scenario, there is selection of primary method of data collection wherein the information will be
gathered through respondents. This information is useful in making meaningful conclusion to get
authentic outcomes in future period of time. Along with this, quantitative methodology has been
selected to analyze the data using suitable graphs, charts, tables and more.
Report structure
 Chapter one-Introduction: It is the first and crucial chapter that includes primary
information of the project including aims, objectives, rational of the project and more.
The main aim of this chapter is to make the readers familiar to the context of the research
study.
 Chapter Two-Literature Review: This is the second crucial chapter where the opinion,
view-points or various authors are included. It is important to develop significant
knowledge base regarding the topic.
 Chapter Three-Methodology: Under this, the appropriate methodology to complete the
project study successfully will include. In present situation, there is use of primary
method of data collection along with quantitative methodology where charts, graphs will
be used to analyze the data.
 Chapter Four-Findings: This chapter of the study will cover analysis of the information
using suitable tools such as charts, bar, graphs, tables and more so that the readers can
make valuable inferences through the available data.
 Chapter Five-Conclusion: It is the last chapter of dissertation that covers summarized
information of project report so that the readers can understand the final outcomes of the
project.
Chapter Two: Literature Review
Introduction
Literature Review covers opinions, thoughts and view-points of authors who have been
conducted study on the similar topic previously. The main aim of writing LR is to develop
knowledge & understanding regarding the topic. While undertaking a study, it is important to
write literature review so that the researcher can understand the topic broadly. Additionally, it is

a piece of academic writing that demonstrate knowledge of a specific topic in particular context.
It is a written view of authors about a particular topic. There are ample of sources of getting
authentic literature such as publications, journals, articles and more (Wakkee and et. al., 2019).
In present situation, the previous studies based on entrepreneurial practices and its significance
have been examines so that the researcher can write meaningful report effectively.
Concept of entrepreneurship in context of the UK
As per the point of view of Qian, (2018), entrepreneurship refers to the concept of
developing and running a new business with primary intention to gain profit by bearing huge
risks within corporate world. In simple words, entrepreneurship can be understood as the
willingness of entrepreneur to start a new venture. Also, entrepreneur plays an important role in
economic growth & enlargement. Entrepreneurship is all about starting a new business by
bearing all the risks with an aim to make higher amount of profit. In the modern era,
entrepreneurship is considered as an activity to transform the world by resolving the issues.
Innovation is significantly associated with entrepreneurial activities. To become a successful
entrepreneur one needs to have risk taking ability as the respective activity includes ample of
risks from the development of venture to running and managing the venture successfully. In
addition, they also need to have other skills like communication, negotiation, presentation, time-
management, decision-making and more (Kuratko and Morris, 2018). These skills &
competencies makes an individual enable to run the business in an appropriate manner. In UK,
there are numerous entrepreneurs who are doing small business and also contribute in
enlargement of the economy by generating employment, developing innovative products and
more. In UK, 5.9 million small businesses were present in 2020. Some of these business units are
also mediums and large size companies. In addition, there are nearly 3.5 million sole proprietors
working within UK apart from large companies and partnership firms. Also, the number of
private sector business has been increased from 2018 to 2020 by 35%. As a result, there are
nearly 200,000 new businesses started within the country (Entrepreneurship Statistics UK
Edition , 2022).

Figure: Functions of Entrepreneurship
(Source: Taxmann.com, 2022)
The above-image shows that there are ample of functions are performed by
entrepreneurs such as innovation & creativity, risk & achievement, organization & management,
research, overcoming from resistance and more. It is analyzed that for an entrepreneur, it is
important to stay innovative and creative. They need to invent new and updated practices to get
better outcomes. Further, they are also required to adopt risk with an aim to run business
successfully. Additionally, the entrepreneur also needs to perform different activities related to
organization & management so that the venture can run successfully. Further, research is also an
important activity to start and run a new venture in an efficient manner. Besides this, the
entrepreneur also needs to put efforts so that they can overcome from change and easily deal
with the change resistance.
Impact of entrepreneurship on economic growth of the UK
As per the point of view of McClelland, (2019), entrepreneurial function is considered as
highly imperative element to ensure overall economic growth. In present time, entrepreneurship
is regarded as an important practice to ensure the growth & enlargement of the economy of
country. However, the growth of different nation is measured based on different components.
The major element to drive economic growth is technological advancements which also includes
ample of forces that are integral for economic growth & enlargement. In the present era, the
numbers of industries are increasing that also give rise to emergence of entrepreneurship where

small business units play an important role. Besides this, entrepreneurship is a behaviour
focusing on resources more than the opportunities. Entrepreneur is a person who performs
different business related activities so that the new venture can be operated successfully. Here,
the entrepreneur bears the risk to start and run new business with an intention to earn potential
amount of profit (Bagheri, 2017). They not only create employment for self but also generate
employment opportunities for others. In the present time, employment is considered as a crucial
component of economic growth. By increasing the number of job opportunities, the country can
easily enlarge in future time. Here, entrepreneurship is related to increase the number of jobs
which further provide opportunities to individuals to earn higher level of income. As a result, the
individuals can enjoy better lifestyle that further proves helpful in upliftment of the entire
country.
Economic growth is considered as the most imperative component so that the economy of
a country can grow. It is analyzed the innovation efforts of an entrepreneur helps the firm to
introduce new inventions as a result the current technology get obsolete. The main aim of
entrepreneur is to develop a new product or service to resolve the prevailing issues within the
society. For this purpose, they invent new techniques and use their creativity. Here, such
advancements are helpful in ensuring the economic growth & success (Keeble and Wilkinson,
2017). In addition to this, entrepreneurs are also likely to spend huge time in research so that
they can invent something new that are valuable for the society as well. Furthermore,
entrepreneurship is a practice that converts knowledge into economic growth as entrepreneurs
find out new significant business opportunities and start new business to exploit such knowledge.
By using own knowledge, they introduce new products which further helps in making the things
simpler for users. Additionally, entrepreneurship might affect the growth of economy in different
ways like introducing innovations that further result in production of new products. For instance,
ample number of entrepreneurs such as Bill Gates, Henry Ford, Thomad Edison and more played
an imperative role in facilitating transformation in industries (Clayton, Feldman and Lowe,
2018). There is also another way of boosting the productivity by facing competition. They also
play a crucial role in improving the knowledge of customers by offering several alternatives to
them for existing products and services present in market place.

The small businesses give a significant contribution to UK economy by forming 98%
private sector businesses. This is because there are ample number of entrepreneurs present in the
country who offer different range of innovative ideas to drive growth of SMEs. In context of UK
economy, supporting entrepreneurship is highly crucial as it employees nearly 16 million people
of the nation. Also, the number is constantly growing even faster than the multinational
corporations. As stated that 98% business of private sector falls under SME within UK hence,
these entities are closely link to the economic growth of the country in significant manner. It is
found that small units are likely to contribute nearly 1.9 trillion Euros towards economic of UK
(THE IMPORTANCE OF ENTREPRENEURSHIP TO THE UK ECONOMY, 2019). Therefore,
there is significant correlation between economic growth and entrepreneurial practices of the
country.
Ways that would be used by an entrepreneur for improving economic growth of the UK
As per point of view Jena, (2020), entrepreneurs are regarded as an important part of the
economy as they can enhance the overall growth of the country by performing their roles
appropriately. They use their knowledge to develop new products to help the customers in an
efficient manner. Further, they are also likely to follow innovative practices with an aim to bring
innovative products in the market to resolve the issues prevailing within the society. However,
there are numerous way which can be adopted by the entrepreneurs so that they can contribute
towards the economic growth & enlargement of the respective nation. It is analyzed that
entrepreneurs provide job opportunities to others. They create new business which tends to create
job opportunities or employment for people in future period of time. Many people have been lost
their jobs due to COVID-19 pandemic hence entrepreneurship has been created opportunity to
either work for self or they can develop a new business (Sergi, 2019). By this way, not only
entrepreneurs can generate income but they can also help others in making an enriching & bright
career. Apart from this, entrepreneurs also play a crucial role in increasing the overall level of
competition and boost the productivity significantly. They create challenges for existing firms to
become more competitive by introducing new practices. It is monitored that entrepreneurs often
enter in the market by offering lower price & quality products to the customers. They also have
high variety of products to address the needs of buyers
(5 BENEFITS OF ENTREPRENEURSHIP IN THE ECONOMY, 2022). Due to this, the existing

players of market have to assess their operational practices, increase their values, lower the cost
and become more efficient.
Entrepreneurs can also contribute in enlargement and upliftment of the society by
creating new business & developing new market. As per the changing trends across the world,
demand of people is also changing constantly. It provides opportunities to entrepreneurs to start
their own new business. If the existing market has already reached at saturation, it provides
opportunities to entrepreneurs to develop new market where they can easily sell their products.
As a result, they start to seek for new market for their products that further positively affects the
growth of the entire economy. In addition to this, they might create the entire industry with
appropriate efforts to contribute towards social growth (Etzkowitz, 2017). In UK, entrepreneurs
are essential component for growth of the entire economy. There is numerous small business
units are being operated by the entrepreneurs. Here, entrepreneurs are also likely to create job
opportunities for local people. Moreover, entrepreneurs across UK also contribute in enhancing
the national income of country. The new products or services produced by them result in
improving in overall wealth from new markets. Besides this, high earnings from entrepreneurial
practices can also boost the national income significantly in the form of high government
spending and tax revenue, investment in struggling sectors for future growth. Moreover,
entrepreneurs can easily contribute in growth of the economy of UK by introducing innovative
technologies. It is analyzed the entrepreneurs are likely to use their knowledge in facilitating
creativity, innovation and technological development across the country (Rafindadi and Ozturk,
2017). Here, innovation and creativity are the major drivers and success factors for
entrepreneurial practices that contribute in creating great opportunities to the economy.
Therefore, there are ample of ways that can be adopted by entrepreneurs to contribute towards
growth and enhancement of the economy of UK in an efficient manner.
Conclusion
After going through the above-mentioned information, it is analyzed that
entrepreneurship is all about starting a new business by bearing all the risks with an aim to make
higher amount of profit. In the modern era, entrepreneurship is considered as an activity to
transform the world by resolving the issues. Innovation is significantly associated with
entrepreneurial activities. Further, entrepreneurship can be understood as the willingness of