Fairfield School: Entrepreneurship and World Economy Report

This report delves into the multifaceted world of entrepreneurship, examining its crucial role in shaping the global economy, with a specific focus on the United Kingdom. It begins by defining entrepreneurship and highlighting the significance of entrepreneurs in driving innovation and economic growth. The report provides examples of successful entrepreneurs, such as J.K. Rowling and Simon Cowell. It explores the key characteristics of entrepreneurs, including creativity, professionalism, risk-taking, and passion, and details their diverse roles, encompassing social, economic, technological, and managerial aspects. The report then analyzes the contributions of entrepreneurship to the UK economy, emphasizing job creation, regional development, and the promotion of innovation. It also considers the impact of entrepreneurship on various aspects of society, such as standard of living, per capita income, and foreign trade. The report also includes arguments from various authors on the matter of entrepreneurship and its connection with the world economy. The report concludes by underscoring the positive influence of entrepreneurship on the UK economy, while acknowledging the challenges and uncertainties that may arise in the future.

Entrepreneurship and
the world economy
Table of Contents

Introduction......................................................................................................................................1
Main Body.......................................................................................................................................1
Conclusion.......................................................................................................................................7
References........................................................................................................................................9

Introduction
Entrepreneurship refers to development of new enterprises by considering the risks
associated with the same. The main objective of enterprises is to earn profit by making
investment and tapping opportunities. the person who manages the business and conceive ideas
to transform them into a venture is known as entrepreneur (Aulet and Murray, 2013). the
entrepreneurs and enterprises contribute hugely to the growth of an economy. It involves
innovation through which new products, services and technologies are built and introduced on a
commercial basis by undertaking financial risks and responsibilities. The main reason behind this
is to earn profit and take the business at next level. This report is about various entrepreneurs
who became successful. Some of them are J. K. Rowling and Simon Cowell. These people are
the examples you should be considered for developing enterprises and become successful
entrepreneurs. Furthermore, it covers characteristics and role of entrepreneurs, their contribution
to UK economy, evaluation of UK contribution to entrepreneurship, relevant examples of well
known entrepreneurs. These things are going to give clarity by emphasising on various aspects of
entrepreneurs and the enterprises built by them. Some arguments of the authors on the matters of
entrepreneurship and its connection with the world economy are also included. The contribution
is huge in shaping a country economically. UK government support and provide subsidies for
helping entrepreneurs get ideas which can be turned into enterprises. The main reason behind
this is that if organisations are earning huge profit then contribution for the betterment of society
is likely to be there (Bruton and et. al, 2013). Entrepreneurs are significant people for lifting and
making the lifestyles better by bringing new innovation and ideas in the existing business
scenario. Also, entrepreneurs are encouraged to work in order to accelerate economic growth by
creating employment at a faster rate and other facilities in an economy.
Main Body
A person who is liable for setting up business as well as take financial risks with a hope
for attaining profit margin is referred to as entrepreneurs. They are liable for creation of new
business who are responsible for taking risks which comes along with sector in which they are
delivering their services and enjoy rewards that occurs by taking them (Burns, 2016).
Entrepreneur is seen as a source of new goods, ideas, services and procedures. They are seen as
1

innovator who are responsible for generating fresh innovations as well as bring something new
within market by which requirements of individuals can be accomplished.
Entrepreneur possess different characteristics which are illustrated here: creativity leads
to something new as without this innovation can't be carried out. It assists to come up with new
ideas for solving problems as well as allow to think which are out of box. Professionalism
implies quality in terms of behaviour and mannerisms with their clients as well as employees as
this leads them to develop culture in organisation (If You Identify With These 10 Characteristics
You Are Thinking Like An Entrepreneur!, 2017). Professionalism also brings with them
discipline and reliability which enables entrepreneur to attain their targets and set an instance for
each. Risk taking is mandatory for entrepreneurs to explore or identify the unknown as without
this unique cannot be attained. In this case, they can opt for unorthodox methods and opt for
differentiated approach for handling risks. Passion acts like a driving force which makes
individual motivated and acts like a driving force through which better results can be attained.
Passion leads entrepreneurs to overcome roadblocks and attain towards goals. Planning denotes
standardised game which is responsible for aggregating all the resources which are present. This
enables entrepreneur to come up with an idea through which goals can be attained in a required
manner (Chaston and Scott, 2012).
Entrepreneur plays different roles while delivering their services so that they can attain
their goals as per required standard. Social roles are individuals who are liable for pursuing
novel potential for solving problems associated with community. This involves creation of
possibilities for entrepreneurship and furnishing employment as well as job options within the
society. In addition to this, it also leads to engage themselves within social welfare services for
redistribution of wealth and income (Gündoğdu, 2012). Entrepreneur is also liable to alter
standardised working procedures within a modernised approach. Within Economic role,
entrepreneurs are responsible bearing risks related with fall of business, collect and formulate the
revenue of organisation in an appropriate manner so that there operations are not hampered. In
addition to this, entrepreneurs needs to ensure that they make use of cost efficient human
resources in an appropriate manner, thereby render channels for having enhanced growth.
Furthermore, with respect to technological role of entrepreneur, they are responsible for altering
traditional technologies within modern system for adapting to enhanced applications with respect
2

to business environment. Along with this, they make use of available technologies in context of
production processes, development of effectiveness and competency among workforce.
Above mentioned are behavioural roles of an entrepreneur but there are managerial roles
also. They have been provided within this section. Figurehead role in which entrepreneur is
head of firm as well as take part in carrying out ceremonial duties like representation of
organisation within formal as well as informal events (Koellinger and Roy Thurik, 2012). Along
with this, they have to acts as a spokesperson during press release. Leader role, entrepreneur is
responsible for bringing people with dissenting approaches as well as views for working like a
team. Therefore, entrepreneur must be good with their leadership and management skills. They
are also liable for hiring, training, motivating and firing there resources when it is important.
Liaison role, entrepreneur must act as source within business house as well as outside world to
identify opportunity while working with other bigger firms. Monitor role is played by
entrepreneur when they have to monitor external as well as internal environment to ensure that
activities are carried out as per desired standard. Entrepreneur acts as a information provider as
well as receiver role to act like a representative and communicate data externally as well as
internally within their business (Kollmann, 2014). Along with this, they also play role of
spokesperson where they can interact with individuals with respect to responsibilities which
they have to carry out. Entrepreneur is source of knowledge related with company to probable
collaborators and investors.
Entrepreneurial role is played by an entrepreneur while communicating fresh ideas to
firm, insight it with friends and employees as well as they are responsible for bearing risks
related with unsuccessful execution. Entrepreneur is liable for carrying out role of disturbance
handler where they behave like mediator and brings in dissenting thoughts to table as well as
motivate them for carrying out their responsibilities in an suitable manner. They are also liable
for handling conflicts and emphasise on objectives of organisation (Kumar and et. al, 2013). In
context of resource allocator, entrepreneur must identify the resources which can be provided
among distinct departments of firm for aiding their necessities as well as demands. This assist
them within attainment of organisational objectives and goals. Apart from this, they also have
negotiator role in which they negotiate with staff as well as collaborators or investors so that
they can have win-win situation. These are roles which are being carried out by entrepreneur
depending upon requirements of their firm.
3

Entrepreneurship renders social as well as economic benefits irrespective of Brexit along
with factors which pose threat with respect to prediction of future. As per article which was
published by Telegraph identifies that they act as a growth engine with respect to healthy
economy (Kus, 2014). Thus, they are the important agents within change for development of
new products as well as services by execution of effective production methods and creation of
new business models. Entrepreneurs render jobs, build prosperous societies and render support
for local communities. They are liable for inspiring idea related with entrepreneurship. In this
context, London renders a enhanced pathway for entrepreneurs as it furnishes strong local
economy as well as provide good transport links. According to Federation of small businesses,
small businesses within United Kingdom, have accounted for around 99.3% for private firms and
it has been identified that there exist near about 99.9% of SMEs (Entrepreneurship’s
Contribution To UK Economic Growth, 2018).
The ways in which entrepreneurship creates an impact on economy of United Kingdom
has been illustrated in this section. Employment opportunities are being provided by
entrepreneurs for management of their business operations and render enhanced employment
opportunities to ample number of individuals. This leads to removal of unemployment problems
which prevails within the market of UK. Government is liable for promoting decentralised
evolution of industries as incentives are being provided with respect to rural as well as backward
areas. This will lead entrepreneurs to make use of opportunities within these areas. This
eliminates disparities and also brings in regional development. Entrepreneurship assist within
reduction of problems associated with sanitation, congestion, pollution and slums by rendering
income within. This denotes that standard of living can be improvised. Entrepreneurs assist
within utilisation as well as mobilisation of local resources such as talents and small savings that
is not utilised. This will lead to effectual usage of communicator through which quick return on
investment can be attained. It acts as a stabilising force which renders high output capital ratio
along with high employment capital ratio (Oyelola and et. al, 2015).
Entrepreneurs can minimise pressure on payments of country by carrying out exportation
of their goods for earning valuable foreign exchange that is carried out by exports. Furthermore,
an entrepreneur within UK renders different products which are needed by their customers. They
will meet the altering requirements of consumers without creation of shortage of their services
and goods. An entrepreneur assists within development of society by rendering employment to
4

individuals as well as paves the path for independent living for people of United Kingdom. They
are liable for inspiring self-governance as well as democracy which will enable them to adept
within distribution of national income within more effective as well as equitable way for distinct
participants present within society (Webb and et. al, 2013). Entrepreneurs assist within
enhancement of per capita income of country in distinct ways for facilitation of development of
weaker sections as well as backward areas of society. Firm can attain economic development
when higher amount of production as well as investment is made.
An entrepreneur assists within channelling of savings to public of United Kingdom with
respect to productive resources which are being established by enterprises. Entrepreneurs lead to
growth within capital of market, this assist within raising money for carrying out their business
by debentures and shares. Trading by public, through the assistance of financial services is being
carried out by this. Development of country is determined through economic expansion,
entrepreneurs establish their firms within backward areas impact government for development of
infrastructure within those areas. Entrepreneurs are liable for promoting foreign trade as well as
domestic trade (Webb, Ireland and Ketchen Jr, 2014). They aims at having financial institutions
which are in form of trade credit, short term loans, cash credit, overdraft as well as unsecured
loans for development of trade within United Kingdom.
Entrepreneurs minimise awareness of power within fewer hands by creation of
employment opportunities by reasonable allotment of income. Entrepreneurs are liable for
promoting economic integration within country by adoption of various economic laws as well as
policies that are being formulated by government. This assist within removal of disparities
among different sections of society through adoption of regulations and rules which are given
UK government for effectual rendering of business within country. Entrepreneurs also aids
within attracting funds from institutions and individuals which resides within foreign countries
for firms. The overall impact of entrepreneurship is affirmative on economy of country as this
provides employment to individuals, satisfy needs of population, bring innovative products and
services and many other aspects.
In any of the nation, Entrepreneurship is one of the most important concept which helps
business organisation to accomplish any of the target which nation want to attain. It mainly helps
to improve the economic condition which helps to bring out the positive result (Williams and
Nadin, 2012). While talking about the government they have been very liberal to the
5

entrepreneurs just because they are the one who can help in different ways. There are number of
opportunities which are being given to the entrepreneurs as they give them the opportunities
where taxes are not being charged for starting phase. Even there some of the circumstances
where entrepreneurs get the opportunity to take the loan at a very reasonable interest rate due to
which it becomes easy for entrepreneurs to become stable in the market (Williams and Nadin,
2012). Although, government has provided number of benefits to entrepreneurs but the main
thing which they focus is that how they can provide training and enhance the skill on the idea
which has been introduced by entrepreneurs.
The main thing which are being seen in current situation, that lots of benefits are being
provided to new entrepreneurship but still it is necessary to focus that the political situation of
UK is constant. It is one of the reason that entrepreneur are not required to face any of the
problem in any of the situation because they have the option to do long term planning. There are
number of offers which are being given but still it has been found that people are lacking to
generate any of the start-up concepts which play the crucial role in it (Zahra, Newey and Li,
2014). In most of the situation, it has been found that people who are working within the
premises of a company bring out new idea which doesn't allow the new entrepreneur to be stable
in the market which is one of the negative sides which can be seen in UK. The positive side for
the contribution is that there are number of university which is working constantly for the
purpose of improvement of skills and knowledge of young entrepreneur who want to invest their
time on creating new business ideas. In the ending segment it can be said that UK is very good in
internet resources which allows people to take the help of social media. Here, they can find that
in which market they need to introduce their idea so that business goals can be accomplished in
best possible manner (Aulet and Murray, 2013).
In present time, Simon Cowell is said to be one of the most successful entrepreneurs who
were known for their good vision. He was born in the year of 1959 and presently is said to be an
English pop music and television entrepreneur. The X Factor along with Britain's Got Talent are
the two American TV shows that are specifically giving or offering the customers with full
entertainment, where Simon Cowell has been judge and has performed really very well and in
effective manner as well. On the other hand, Cowell has also been the principal, founder and
chief executive of British entertainment company Syco. He is also an on-screen personality as a
judge of talent. Simon Cowell is a son of a music industry property executive. On the other hand,
6

if it is talked about Simon Cowell's history then they were the three half-brothers and were
having a half-sister as well. A multimillionaire property official more youthful sibling. Cowell
dropped out of secondary school at 17 years old and played out various modest occupations until
he discovered his way to a situation in the sorting room of EMI Music Publishing, his dad's boss.
In June 2007 "England's Got Talent" appeared in the U.K. The third period of "England's
Got Talent" increased overall acknowledgement with the revelation of vocalist Susan Boyle.
Cowell has filled in as a judge on "England's Got Talent" for every one of its seasons, and he
joined the "America's Got Talent" making a decision about board in 2016. He has proceeded in
that job. 2016's "America's Got Talent" champ Grace was distinguished as a rising star by
Billboard magazine in 2017, and her presentation collection "Simply the Beginning" arrived at
the Top 25 on the U.S. collection graph. In 2015, Simon Cowell propelled the show "La Banda"
on Television in the U.S. The objective of the show was discovering male vocalists to make up a
definitive Latino Boy Band. It publicized for two seasons in 2015 and 2016. Therefore, the
overall story of Simon Cowell has been one of the inspirational stories, where it may lead others
to become successful at workplace.
If it is talked about J. K. Rowling then she has been a successful entrepreneur and a
writer as well. Basically, writing career J. K Rowling has sold over 450 million copies of her
books and made over $1 billion. On the other hand, if it is talked about the Harry Potter, which is
one of the fictions based series, which made J.K Rowling famous in all over the world. On the
other hand, it can also be said that she is an entrepreneur because she created an industry worth
thousands, all with the use of her imagination.
Including this, it is said that throughout her life J.K Rowling has lived the life with peace
but when her mother died the whole scenario changed for her. Joanne Kathleen Rowling and her
family mourned for this early death. It has been found that, many individuals consider her
mother’s death, which inspired Harry Potter's family situation. J.K Rowling has said that one of
her worst regrets is that her mother never knew Harry Potter. Therefore, it can effectively be said
that the role that J.K Rowling has followed has given high number of benefits.
Conclusion
From above, it can be concluded that entrepreneurs are individual who are liable for
bringing fresh idea into a market. Each has their own perspective and when a new business is
started it brings innovation with them for dealing with wide range of problems. An instance can
7

be taken into a consideration; online systems for booking were brought which made easy for
individuals to carry out reservations as well as ensure availability of services. The benefit
provided by entrepreneurs was a new thought process which aimed at providing ease to
individuals for carrying out their activities in an enhanced manner. It will provide easiness within
services to individuals and for entrepreneur’s profitability.
An entrepreneur creates an affirmative impact on economy of country by providing job
opportunities for unemployed individuals. As firm needs to carry out their operations then it
won’t be possible without workforce. In addition to this, they will also solve problems of
individuals which are faced by them on normal days. For an example, in busy schedule people do
not like to go out for shopping and prefer to have things at doorstep, different entrepreneurs
brought an idea of electronic commerce which enabled them to fulfil requirements of their
customers in an impelling manner. This created positive effect on both firm as they were able to
increase their sales as well as attain their goals within stipulated time frame. Along with this,
individuals will have services according to their requirements. The reason for illustrating these
examples is to exemplify the role which an entrepreneur plays within economy of country. But it
is not possible if risk is not taken as it cannot be analysed that particular idea will be liked by
individuals or not, how they will react to specific situation. They takes the risk for bringing in
new innovation within the market as it will have two possibilities only either failure or success.
Both will lead to learn something and learn from it which will lead them to something better.
United Kingdom supports by providing them adequate funds in the form of loans so that
entrepreneur can bring in their idea within the market of UK. Along with this, the entry criteria is
also not so tough which aids as well as motivate firms to deliver something new which will
render enhanced benefits to all. In this an entrepreneur JK Rowling is talked about who followed
their passion that was writing and they wrote the most popular series of books that is Harry
Potter which was later covered in movies also. If they would not have followed their passion and
taken risk then they won’t have net worth of around $1 billion. Other entrepreneur considered is
Simon Cowell who made their name by featuring within different television shows and have
their own company Syco which is a production unit. They have net worth of near about $95
million each year. In case the risk of starting their own venture has been not taken by them then
they might not be so popular and earning a huge amount. Basically, it shows that only creativity
is not required, but a zeal to convert into reality is also required for have a benchmark.
8

References
Books & Journals
Aulet, W. and Murray, F., 2013. A tale of two entrepreneurs: Understanding differences in the
types of entrepreneurship in the economy. Available at SSRN 2259740.
Bruton, G.D. and et. al, 2013. Entrepreneurship and strategy in emerging economies. Strategic
Entrepreneurship Journal, 7(3), pp.169-180.
Burns, P., 2016. Entrepreneurship and small business. Palgrave Macmillan Limited.
Chaston, I. and Scott, G.J., 2012. Entrepreneurship and open innovation in an emerging
economy. Management Decision, 50(7), pp.1161-1177.
Gündoğdu, M.Ç., 2012. Re-thinking entrepreneurship, intrapreneurship, and innovation: A multi-
concept perspective. Procedia-Social and Behavioral Sciences, 41, pp.296-303.
Koellinger, P.D. and Roy Thurik, A., 2012. Entrepreneurship and the business cycle. Review of
Economics and Statistics, 94(4), pp.1143-1156.
Kollmann, T., 2014. 7. What is e-entrepreneurship? fundamentals of company founding in the
net economy. Handbook of Research on Techno-Entrepreneurship: How Technology and
Entrepreneurship are Shaping the Development of Industries and Companies, p.141.
Kumar, S.M. and et. al, 2013. The role of women entrepreneurship in modern
world. International Journal of Current Engineering and Technology, 1(Special Issue),
pp.100-104.
Kus, B., 2014. The informal road to markets: neoliberal reforms, private entrepreneurship and
the informal economy in Turkey. International Journal of Social Economics, 41(4),
pp.278-293.
Oyelola, O.T. and et. al, 2013. Entrepreneurship for sustainable economic growth in
Nigeria. Journal of Sustainable Development Studies, 2(2).
Webb, J.W. and et. al, 2013. Research on entrepreneurship in the informal economy: Framing a
research agenda. Journal of Business Venturing, 28(5), pp.598-614.
Webb, J.W., Ireland, R.D. and Ketchen Jr, D.J., 2014. Toward a greater understanding of
entrepreneurship and strategy in the informal economy. Strategic Entrepreneurship
Journal, 8(1), pp.1-15.
Williams, C.C. and Nadin, S., 2012. Entrepreneurship in the informal economy: commercial or
social entrepreneurs?. International Entrepreneurship and Management Journal, 8(3),
pp.309-324.
Williams, C.C. and Nadin, S.J., 2012. Tackling entrepreneurship in the informal economy:
evaluating the policy options. Journal of Entrepreneurship and Public Policy, 1(2),
pp.111-124.
Zahra, S.A., Newey, L.R. and Li, Y., 2014. On the frontiers: The implications of social
entrepreneurship for international entrepreneurship. Entrepreneurship Theory and
Practice, 38(1), pp.137-158.
Online
If You Identify With These 10 Characteristics You Are Thinking Like An Entrepreneur!. 2017.
[Online]. Available through: <https://www.jbcnschool.edu.in/blog/characteristics-of-an-
entrepreneur/>.
9

Roles of an Entrepreneur. 2019. [Online]. Available through:
<https://www.tutorialspoint.com/entrepreneurship_skills/entrepreneurship_skills_roles_o
f_an_entrepreneur.htm>.
Entrepreneurship’s Contribution To UK Economic Growth. 2018. [Online]. Available through:
<http://blog.populous.world/entrepreneurship-contributing-to-a-stronger-economy/>.
Entrepreneurship’s Contribution To UK Economic Growth. 2018. [Online]. Available through:
<http://blog.populous.world/entrepreneurship-contributing-to-a-stronger-economy/>.
10