Entrepreneurship and the UK Economy: A Critical Analysis

This report provides a comprehensive analysis of entrepreneurship and its impact on the UK economy. It begins with an introduction defining entrepreneurs and their role in economic growth, emphasizing their contribution to employment and innovation. The report then evaluates the characteristics of successful entrepreneurs, using Alan Sugar and James Dyson as case studies, highlighting traits such as risk-taking, passion, and strong work ethic. It examines how these entrepreneurs have contributed to the UK economy, focusing on innovation, job creation, and technological advancement. The report also explores how the UK fosters entrepreneurial development, concluding with a summary of the key findings and the overall significance of entrepreneurship in driving economic prosperity. The report also includes references to support the analysis and findings.

Entrepreneurship
and the World
Economy

Table of Contents
INTRODUCTION...........................................................................................................................1
Evaluate the characteristics and the role of entrepreneurs..........................................................1
Critically examine how entrepreneurs have contributed to the UK economy............................6
Critically study how UK has contributed to entrepreneurial development.................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Entrepreneurs is explained as a person who start up business with scare resources and
bears all risk and rewards of the venture all alone. They normally come up with small business
in intense competitive world as well as share hands in creating huge employment opportunities
for society people (Ateljevic and Page, 2017). In order to raise the national economy the
governing bodies need to encourage entrepreneurs to come up with new and innovative business.
They plays significant role in growth and development of the economy to a large extent. This
report is based on entrepreneurs who has directly contributed in raising living standards of the
people. For this report two successfully entrepreneurs are chosen which are, Alan Sugar and
James Dyson. This great personality are UK most successful entrepreneur and are motivating
young minds to turn up as independent entrepreneurs. There are various benefits of becoming an
entrepreneur and starting own business in global market. Some of the advantageous are,
complete freedom to pursue own vision, huge opportunity to learn and acquire knowledge,
having full control on business operations and a positive sense of pride while attaining set goals
and objectives.
To be leading and successful entrepreneurs in neck to neck competitive world there are
certain skills which need to be adhered as an entrepreneurs. Some of the skills and abilities are
god gifted while other need to upgrade with the phase of time (Ayandibu and Houghton, 2017).
Good communication, time management, efficiency, strategic thinking, networking, finance and
so on are some of the mandatory skills which need to possess by an individual. Moreover, along
with skills are there are some traits of the leading and successful entrepreneurs such as,
creativity, competitive, open minded, confidence, self starter, determination, strong people skills
etc. having all this skills in an individual can easily become entrepreneur in global market place.
In era of competitive world only some of the entrepreneurs survive because they build and
maintain great network, invest wisely, give priority to customers demand, establish a group of
advisor, stay current with professional tools etc.
Evaluate the characteristics and the role of entrepreneurs
About Alan Sugar:
Alan Michael Sugar is a successful politician, media personality, business magnate and
political advisor. He was from hackney , London and in the year 1968 he expanded the business
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of Amstrad across the globe. It is manufacturing sky digital interactive boxes. Along with this he
is actively involved in philanthropist activities with a number of charities (Ayandibu and
Houghton, 2017.). To grow the business open market place they invested huge money without
any fear and this attitude made them grow his fortune from scratch to huge empire. Sir Alan
Sugar was ready to take necessary risk in every phase of business.
Illustration 1: Alan Michael Sugar
The characteristics of Alan Michael Sugar:
This great personality is successfully entrepreneur in today's era because he withholds
certain characteristics such as, risk taker, passionate, self motivator, never give up attitude and so
on. Here are some of the characteristics of Alan Sugar which are highlighted below:
Self motivator: Sir Alan is a self motivator which has pushed to become a leading
entrepreneurs in Amstrad . Having self motivator as a characteristic is biggest plus point to build
oneself as a successful entrepreneur. While opening a new venture there are many ups and down
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that demotivate sir Alan in open market place. Having this characteristics encouraged Air Alan
Sugar to become a survivor despite of numerous obstacles (Barba-Sánchez and Atienza-
Sahuquillo, 2018).
Passionate: From the childhood Sir Alan was passionate about this work. In the early
age of 21 he thought of starting a business named Amstrad. Zeal to open business of Amstrad
has made them leading example of entrepreneur all over the world. Despite of so many risk
factors Sir Alan Sugar never got distracted from their passion.
Risk taker: To grow the business of Amstrad they never though twice to invest money
in the market. Alan Sugar made risk as their friend and performed all possible ways to overcome
it. Having risk taker characteristic in him was a positive mark and turned him as a successful
example of entrepreneurs across the boundaries.
Never give up attitude: When a entrepreneur open a new venture in the market there are
many unseen ups and down faced by the person. But standing stable in all circumstances and
having the attitude to never give up make them top entrepreneur (Boermans and Willebrands,
2017). Despite of bearing heavy loss Sir Alan again framed strategies to grow their Amstrad
business in the UK market.
Pursued new opportunities: Sir Alan Sugar was a good learner and was keen interest to
grab things from anywhere. He welcome new opportunities in their working premises which
helped them to gain competitive advantages against competitors. This characteristics made their
Amstrad business grow and expand overnight.
Perseverance and persistence to conquer set goals: Alan Sugar is posses perseverance
and persistence top conquer goals as important characteristic which has pushed them throughout
the journey of entrepreneur to perform effectively and efficiently. The attitude of achieving the
set goals in any condition assist them to work day and night to meet the customers needs and
wants. By doing set standards are achieved in the set timer frame.
Role of Alan Michael Sugar
The role of Alan Michael Sugar in Amstrad is to initiate innovation in their business
(Burns and Dewhurst, 2016). They motivate their team mates and other members to come up
with creative ideas in order to survive for longer time time duration. Along with this they
encourage their co-workers to work for the society welfare and be a part of charity club. By
doing so goodwill is raised in market and brand recognition is done easily. The role of Alan
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Michael Sugar motivates other staff members to work effectively and effectively so as to
accomplish set goals and objectives in intense competitive world. According to the dynamic
environment the role of Alan changes in order to create tough bench mark for rivalry.
About James Dyson
This great personality was born in the year 1947 who is a British inventor, designer and
founder of Dyson Ltd. Across the the world this James Dyson is famous for cyclone bag-less
vacuum cleaner. His father died because of cancer but excelled at long distance runni9ng
because of determination. Before entering into engineering he studied furniture and interior
design at Royal College of Art. On research and development work organization is spending
around £7m in the year 2017 (Cole, 2018).
Illustration 2: James Dyson
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The characteristic of James Dyson are explained as follows:
Disciplined: James Dyson is disciplined in this work from the early days . He posses
this characteristic within that lead him to become a top entrepreneur across the globe. Being well
disciplined in his work helps James to completely focus on companies product and growth rate.
This particular characteristic has pushed them to perform better as compare to other rivalry.
Strong people skill: This is the most effective characteristic which as an entrepreneur
should build within. James Dyson holds impressive communication skills to sell the goods of
vacuum cleaner as well as motivate employees to enhance their skills (Dana, 2015). In the open
market place there are various entrepreneurs who boost their employees to perform better but
few are there who encourages other to do the same. By doing communication sell gets enhanced
as well connection with people grow gradually.
Strong work ethic: James Dyson very strictly follows their work ethics. This has made
them successful leading entrepreneur in UK. Having this characteristic is a positive mark for
entrepreneurs. To grow the business of vacuum cleaner it is very important to have work ethics
in their day routine. Depending upon the type of business work ethic changes it should be copied
from one another.
Competitive: In order to survive in neck top neck competitive world it is very important
to have the characteristic of competitiveness. James Dyson is more interest in building tough
competition for others so that their business can be in the leading position. Entrepreneurs having
this characteristic can make their business flourish in international market easily. vacuum cleaner
business is gaining competitive advantages against rivalry because of their competitive nature.
The role of James Dyson
James Dyson encourages failure to perform better in the business because it showcase the
loop holes of weak area (Ferreira and Gondim, 2017.). They boost failures to perform their work
more systematically as compare to earlier. This directly assist in achieving set goals and
objectives. In the set time duration. The role played by James in the working premises is crucial
in nature. They reward their team mates according to their performance so that other employees
get motivated too by this act. The another important role played by James is to initiate innovation
in their work so as to bind potential customers for longer time period.
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Critically examine how entrepreneurs have contributed to the UK economy.
Entrepreneurs has immensely contributed in the growth and development of the United
Kingdom economy. They come up with creative business generating huge employment
opportunities for general public this act will raise national economy to a large extent. Below are
some of the points which sates that entrepreneurs have contributed to the UK economy are
mentioned beneath:
Benefits from entrepreneur to UK economy:
Investing in products and services which people require: Entrepreneurs come with
new venture which will full-fill the clients demand . By opening business related people
requirements it directly raises overall productivity and profitability ratio (Laudano and Caputo,
2018). By this huge profit is maximized. It is further used to create more job opportunities for
people in the country.
Providing employment opportunities: More number of entrepreneurs results to more
new business in the market. Which ultimately raises employment ratio in the nation. More the
employed people in the nation more will strong will the nation economy as compare to
developing countries. UK governing bodies encourages entrepreneur as it helps in reducing
employment and illiteracy rate from the society. As well as directly raises living standard of the
people.
Bring Innovation: Every entrepreneur come up with different idea and innovation in cut
throat competitive world. To survive in the market and to make economy financially stable in
nature it is very important to come up with innovative ideas. Innovation makes the nation to
grow and develop in sustainable in manner. The living standard of people raises as well which
raises their purchasing value. All this directly contributes in growth of the nation economy to a a
large extent.
New technology promote efficiency: Modern tools and technologies raises the UK
economy as they are able to meet the emerging needs and wants of the customers. As well as
they are capable enough to manufacture their own product (Mamabolo and Kele, 2017). By this
they become the exporter of the material to other nation which raises the financial transaction
which leads in increment of money.
Commerce and regional economic integration: Modern plant and machinery has made
it easy for small entrepreneurial business to grow into regional and global market. When the
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goods and services are exported to the near by regions then these ventures directly or indirectly
contributes to a region's productivity and disposable income. It helps in making UK economy
stable and promote overall welfare of the population.
Contributes to gross national product: Establishment of new ventures contributes to
UK economy as a whole. Gross national product is calculates upon total number of goods and
services available in a nation. This highlight economy economic condition of the nation. It can
be sated as more the number of availability of goods and services more will will GNP (Gross
national product).
International trade: Entrepreneurs are stated as wider market. They are the core element
through which product and services can be sold abroad and can raise foreign exchange ratio. As
there will be more customers purchasing their designed goods and services across the boundaries
more will be the revenue accumulation. New business through international trade is able to
maximize huge profit is a positive mark for UK economy (Mugler, 2017). All this make
economy of United Kingdom financially strong in every aspect.
Drawbacks of entrepreneurs to UK economy:
Failure of small firms: With the raising number of entrepreneurs in UK small business
are on stake. They are over drawing small business with their innovative idea. This has raised
the ratio of unemployment in the United Kingdom to a large extent. The elimination of small
business neck to neck competition is prevailing among medium mad large multinational
companies which is greatly affecting products and services pricing criteria. Along with this
customers seems top be disappointed with the market conditions and goods prices designed by
the ventures.
Excess use of natural resources: With the rapid increase of new business in UK market
place there is excess use of natural resources. And there are scare resources present in the
environment and utilizing them at tremendous scale is not good. Entrepreneurs coming with new
business idea uses and waste resources at a large scale. As they are trying to stabilize in the
market they adopt all possible way to be a part of competitive market place. As resources are
degraded at tremendous scale the economy of the nation gets affected in negative way.
Unemployment: As creative and innovative business is abolishing small business from
the market they are directly raising unemployment ratio. Many of the people are jobless as they
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are thrown out from the UK market by new ventures and entrepreneur. The gradually uplifting
unemployment ratio is creating large negative impact on United Kingdom economy (Ratten and
Ramadani, 2017). They become financially weak and are unable support business growth.
Critically study how UK has contributed to entrepreneurial development.
Entrepreneurs can grow in the market when they have complete support from the nation
governing bodies. In this case UK government is providing all the necessary support to the
entrepreneurs who are willing to come up with new business in order to meet emerging needs
and wants of the customers as compare to competitors. Without the support of UK government it
is not easy to become a successfully entrepreneurs in neck to neck competitive world. The
critical evaluation of how United Kingdom has contributed to entrepreneurial development are
discussed as follows:
Benefits provided by UK to entrepreneurs
Encourage entrepreneurs: UK governing bodies is encouraging entrepreneurs to come
up with creative business idea in cut throat competitive world. Several benefits are given to the
female entrepreneurs when take initiative to start a business. On less interest rate loan is provided
to female entrepreneurs for their venture. This motivate general people to turn them into
entrepreneurs so that innovation can be done in the rigid business. The entrepreneurs association
frame distinguish strategies to mould young mind to become entrepreneurs. They visit colleges
and conduct sessions regarding how to become success-full entrepreneur (Rezaei and Ramadani,
2017). Government is encouraging entrepreneur association to motivate young people to come
up with new business idea in the global market. By doing so UK will be the strongest nation as
people are involved in innovation.
Providing entrepreneurial networks: United Kingdom governing bodies is providing
entrepreneurial networks so that various entrepreneur can be connected with each other and can
grow their business successfully. Building strong relations with each other new business various
new and creative idea gets generated which will help the firm to flourish in competitive world.
With the support of UK market is become easy to connect with entrepreneurial networks spread
all over UK. This will broaden will broaden the area of new venture and people get encouraged
to become entrepreneurs.
Government provide all necessary support: While opening new venture in UK market
by an entrepreneur the governing bodies provide all essential support to the entrepreneurs. The
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provide loans and other facilities to the entrepreneur so that they can easily start up their
business. By taking this step from government side it has encouraged large number of young
minds to become entrepreneurs. (Yan and Yan, 2016) People drop the idea of opening business
of their own as they lack in finance and other sources. By getting support from government they
are encouraged to execute their idea in real terms. It is positive mark which is taken by UK
government to raise the number of entrepreneurs and new business idea in the nation.
People are made aware that regarding entrepreneurs: Association of entrepreneur are
conducting sessions and seminars regarding benefits of becoming entrepreneurs, turning passion
into business and so on. All this boost young mind to experience hand in becoming
entrepreneur. Along with this the fear of how to become start a business and other related
questions are clear in the minds of the people. It directly or indirectly push people to make their
passion and idea into new business idea (Saleem, 2017.).
Allowed local banks to support entrepreneur: United Kingdom state government has
allowed local banks to provide easy and low interest loan facilities to the entrepreneurs. By doing
so people doped the idea of opening new business is solved and they are encouraged to start new
business with sufficient funds. There many benefits provided to the entrepreneurs while taking
loan for start up.
Despite of implementing so many benefits of the entrepreneurs by UK government still
people are not motivated to open up their business at a large scale. They are ready to work as
labour for a salary package in the fixed time duration. Many benefits are offered to female
entrepreneurs still women are not willing to start up their own idea in real terms. Due to which
the ratio of entrepreneurs is not up to the mark as compare to expectations (Volery and
Mazzarol, 2015).
CONCLUSION
From the above report it can be concluded that entrepreneurs are the backbone in building
the national economy stable in nature. This is because entrepreneurs are creating large job
opportunities for society people and raise their living standards. People are made well aware
regarding the benefits of becoming entrepreneurs rather then becoming slaves of corporate
culture. UK is flourishing as compare to other nation because it is encouraging entrepreneurs in
their market place. With the raising number of entrepreneur they uplift international trade,
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contributes to gross national products, diversity in goods and services, employment generation,
taxes, innovation and so on. However, UK governing bodies is also motivating entrepreneur to
raise their number as compare to other country. They help local banks to work with new small
business by providing loans, government of UK offer state loans to female entrepreneurs,
organize business development classes at local colleges etc. these are some of the ways by UK is
motivating people to become entrepreneurs.
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