Entrepreneurship is a huge concept and is very much in trend from last many years as it has great opportunities to offer to entrepreneurs. This is a commercial activity of starting up a business with expected danger involved with the hope of earning profits. Entrepreneurs are the one who take the initiative of trying something new and offer a different product or service in the market. They have distinct characteristics from that of managers as they do not follow what other ask them to and on the other hand create their own path (Coviello, 2010). Depending upon the availability of resources with the entrepreneur and desire of earning profit the scale of starting up the business is decided as private enterprise is done at small, scalable, large and social level.
The following essay will discuss the different individualities and role performed by business persons along with the focus on how they have assisted in the economy of UK. Thereafter the essay will highlight the contributions that are made by the same country in the growth of entrepreneurship. In order to get a clearer picture of the referred concept a real life examples are taken which will show how the idea of entrepreneurs has developed and contributed in UK economy. J.K. Rowling is a famous author and one of his major work was the series of Harry Potter which was widely appreciated at global level. Another businessman taken is Simon Cowel who has gain recognition through television. He is a music executive and television producer and is earning in millions and still working on his skills to add more to his worth.
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Characteristics and the role of Entrepreneurs
There is a huge population in the world but not everyone can be an entrepreneur as they have different features in them which differentiate them from a common man. These are those traits which are not learned but a person is brought with it or ha he capacity to acquire from the surroundings. J.K. Rowling for instance can be considered to examine the qualities of an entrepreneur. She is a novelist, screenwriter and film producer which shows how multitalented an entrepreneur is. They have the capacity of performing various activities all together with excellence. She won great awards on her successful work of harry potter which was sold in different languages and is one of maximum sold book in history. For her freedom is most important as it supports a person to explore and try things which are never done before and do not like if discouraged or interrupted by the any external party. This reflects that entrepreneurs do not like to be tied down to any particular area as according to them it restricts their growth. With this character sketch such people keeps on adopting to change and exploit the opportunities that they come across. She was unbeaten and has inspirational behaviour which influence the people around her and they get attracted towards her and hence this way it becomes easy to motivate others too. They know how to promote their idea as communication skills is another common characteristic that is found in such personalities. They know how to put their idea forward and get it done by inspiring others for the same and through providing complete knowledge about the new concept.
This way the role of entrepreneurs is significant as they bring new options in the society which further add better satisfaction to them (Dennis 2011). it is an important characteristic as if a person is not successfully in convincing the other person with the proposed idea then it is difficult for the start ups to get the funds for investment. Also when a particular service or product is brought to the market which has capacity to deliver more worth it increases the total standard of living for the people. entrepreneur is self-employed and when they work on huge scale employee other with them which creates job opportunities for most of the unemployed people. In this way they perform the role of reducing the unemployment ration from the country. Rowling was a self-challenging person as she always tested her capabilities and try to reach another level every time she conquered the present stage. It reflects how entrepreneurs never give up on them and keep on taking the dares to maintain their continuous growth. This way they only do better for themselves but also for the people whom they are targeting to. They get the quality services which are competitive.
Another example taken in order to understand the role and characteristics of entrepreneur is of Simon Cowel. He was a judge at English television music and talent show. He has gained a huge name specially because of his honest behaviour during the tenure of a reality programme “American idol” followed by X factor. He managed to become this famous by believing in himself and not doubting his capabilities. He started his career working at a mail room and then managed to reach at the present position. It shows the major characteristic of entrepreneurs that they are hardworking and believes in themselves which continuously push them from inside to do well. Being determined is found in them as they once decide to achieve something gives their full dedication towards it and do not get deviated from the other external factors. He used to seek information from whoso ever he meets and it helped him improving the decision making process. It presents that entrepreneurs has the trait of gathering relevant data from their surroundings and with their self-confidence apply that knowledge in practical life to generate revenue (Volkmann, Tokarski and Ernst, 2012. Lot of issues were faced by him but with the help of problem solving attitude he overcome all the hurdles and achieved success.
All the above discussion shows that there are a number of different characteristics that are found in the entrepreneurs through which they shine out of the crowd and achieve their goals and objectives. This way their role again becomes significant and they become the risk taker. In the business world it is very important to try something which has danger involved in it. This is because nothing comes for free and if something has risk in it there will be equal or greater chances of opportunities too. In order to grow the economy investing or coming up with such plans is required and entrepreneurs are one who has great role in it. They try fresh ideas and ensures that they archive success in same.
Another important part that these personalities has is of bringing a balance in regional development. On broader concept it is found that more advancement is done only in those areas where there is infrastructure or has the availability of resources. It limits the growth of nation as whole. In this case capitalists by getting innovative or frugal innovation ensures that small areas which are deprived of sources can also be raised. They make the availability of options for people and ensure that they get right to choose which further add worth to their spending. Apart from this when a business plan is carried out in an under developed area it offers the local residents to get the chance of employment (Congregado, Golpe and Parker, 2012). It further raises the total standard of living of the people as they get better products and services on the expenditure of same amount. The entrepreneurs adopt the possible opportunities an exploit them which leads to effective utilisation of the resources and hence also put a positive effect on the GDP of the country. Also if the role of same concept is evaluated on global level than it has facilitated innovation and exchange of income. Now people are doing variety of businesses and using the resources from cross culture which has further promoted to good relations among different nations. They interact do work together and exchange ideas which further facilitates innovation. Better working methods are then identified which help in the development of own nation.
Another role of entrepreneurs is to facilitate change in the society. When people are provide with same products and services it creates boredom and also limits the development. For creating the value of money and maintaining the culture of change it is important that continuous alterations are done in the services and research is don what can be served in the society which has the capacity of creating demand for itself.
Evaluate how Entrepreneurs have contributed to the UK ECONOMY
In the above section the role performed by the entrepreneurs were discussed and it is a reason why they are consisted as a global asset which should be cultivated and motivated to the maximum possible extent. It is also because if the changes once brought by this individual are successful than a significant change in the GDP can be observed as a result of creation of wealth and availability of better job opportunities. Their contribution in economy is evident as entirely new product and services are brought to the market which stimulates demand and hence result into increase in total expenditure by the public. Not only males but female’s entrepreneurs have also great contribution to the UK economy as they have abundant potential.
Taking examples of the entrepreneurs discussed above it can be more clear that how entrepreneurs has contributed to the economy. J.K. Rowling great work Harry potter contributed more than 4 billion to UK which is a big amount in itself. Thereafter the other personality taken was Simon Cowell's who again made a significant role in raising the total economy as he brought business in billions.
According to the survey conducted in march 2019 the share of females was estimated to more than fifteen percent which is good number in itself (Burns, 2016). Around 40 – 50% of the total population is provided employment by the small start-ups and also established a good competition at international level. with the hike in the total number of commercial units a growth in taxation was found which was delivered to the UK government. It further adds more power to the hands of the central power which increased their spending power. Strat ups are considered as pillars of the economy of UK after the greet increase in number of same which reached to 419,000 from 235000 in only 10 years. (2010 – 2016). It has derived change in the economy with advanced application. The below graph shows that there was a noticeable change in the total number of business in the year 2012. It also depicts the corrections in the rate of betterment in business.
This small commerce adds £1.9trillion every year in the direction of the economy of the UK, so we can see clearly that a connection between the sector and the economy will exist, but perhaps more significantly given the size of the input there will unquestionably be connection. In other words, the health and wealth of SMEs will directly affect the state of the UK economy rather than just fluctuating along with it through the peaks and troughs of the global markets. Operational activities were raised to 95% by year 2015. The educational institutes were also benefited by the same concept. More of skilled labour were made available who has the potential of raising the current status of learning. It also raised the total level of competition which led to the full capacity utilisation of various resources. It again has favourable impact on the economy of UK (Khalil and Olafsen, 2010)).
Although the impact of entrepreneurship was positive on the UK but there were some negative results too that were associated with it. The most significant one is plundering of all the available resources. In the race of achieving revenues a raising the profitability all entrepreneurs do the aggressive use of UK properties that it can affect much to the natural surroundings. Also effective planning is required in order to carry out the activities related to the referred concept. There are great chances of failure too or non-achievement of the desired objective and in that case it can lead to destitution in the society which will have a direct impact on the economy of UK.
Figure 1: One year survival rate of newly born businesses, UK
Evaluate how the UK has contributed to Entrepreneurship
United Kingdom is the nation which have huge contribution in development and improvement in the aspect of entrepreneurship. This was ascertained from the fact that more than 90% employment is provided by SME's within the nation at local, regional and national level. The major factors which have contributed towards the development of entrepreneurship's in nation includes better infrastructure, government facilities, good economic condition, political stability and availability of advanced technology. Analysis of these factors help to grab the knowledge that how these build the path for the individuals to start their own business and focus towards become successful entrepreneur (Storey and Greene, 2010).
Technology is that factor which is now become the base for every organisation to attain success in market. This was not only having contribution in the success of existing organisation but also provides an opportunity to the individuals of society to start their own business through the use of technology. The nature of UK in terms of technology acceptance was good from the very initial stage. It was seen that UK is technologically advanced and almost all the new technologies are persisting in nation and used by the individuals. The presence of this nature help individuals of society to think innovative and focus over formulation of their own business instead of doing jobs. The technology which has highest contribution in the development of businesses and entrepreneurship's in UK was internet. This technology allows the person to get attached with some other person easily even the presence of that particular person was in some other nation (Bridge and O'Neill, 2012). This concept brought many innovate ideas among the individuals through which become entrepreneur in their life and start their own business which are typically based upon the use of internet. This includes the starting of businesses such as Citymapper, ATM Hunter, Tranfergo etc. So, the contribution of technology in UK behind the development of many large entrepreneurship's is significant in nature. Now, this is become the necessity for all sector of organisations. This was the main aspect that always behind the success of an organisation irrespective of the impact or presence of other external environmental factors.
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Government and politics also have the impact over the businesses along with their strength. The support of government is always beneficial for the existing organisations along with the new individuals who want to start and grow their businesses. The nature of government and politics present in UK is stable in nature from the very starting point. They always focus over development of their domestic and international organisation for further growth of nation. After the decision and referendum of Brexit more initiative is taken from the government side in development of start-up's and growth of SME through formulation of plans and providence of tax benefits. The one programme which is provided from the government side is named as Global entrepreneur programme. In short it is called as GEP and known as famous venture capital programme (Burns and Dewhurst, 2016). The main aim of this is about creation and transformation of start-ups into global companies through providence of base for international expansion. This programme is set by the government of nation in 2003 with the help of UK trade and investment. The number of organisations which are developed with the help and support of government along with their programmes is named as NHS and BBC.
Economy is also the main factor upon which needed to provide focus while want to start their business. Fund is the optimum requirement to start any business and its availability depends upon the economy of nation. If the economy is strong and presence of high amount of cash flow, then easy for the individuals of the society to start their own businesses along with the growth of the already established companies. UK is world's fifth largest economy by GDP and second in EU. This shows that the availability of finance at sufficient rate is available in nation which allows the individuals to borrow from the banks and start their own businesses. Low rate of borrowing provides an opportunity to handle the BEP situation of business easily which help the owners of UK start-up's that sustain in market for longer period of time through focus over deliverance of their core functions. This is also become the reason that contribution of UK in development of the large number of entrepreneur and entrepreneurship's (Burrows, 2015).
The benefit of this is not only attained by the entrepreneurs but this will create the opportunities for many existing SME organisations to focus over growth of their businesses and become global in nature. Aston Martin is the organisation which belongs from UK and have operations worldwide through the financial support from their own nation. The condition of economy is not same at all times as the situation of recession is also faced which have negative impact over the entrepreneurship's and existing business functions (Freytagand Thurik, 2010).
This essay delivered an overview of entrepreneurship and how it has contributed to the economy of UK. From the above essay it is understood that entrepreneurship can be viewed as concept that supports change and innovation, believes in initiating something that is not common and may have risk involved within it. It is a process that continues until the entrepreneur do not achieve success and is carried out with great zeal and determination. To be an entrepreneur it is significant that a person has the capabilities of taking the responsibility which are awarded with rewards, incentives and profits. It makes this a complex aspect that demands different attitude and mind set to continue. Each such personality is influenced to be one due to different factors which ranges from being innovative since birth or gradually developing the behaviour which includes the various characteristics of entrepreneur. To be successful it is crucial that the person do not hesitate to try a new opportunity that is present in the world outside and keep his eyes open so that any positive chance if present than exploitation of same can be done as early as possible. This discussion showed that how with the introduction of entrepreneurship in the UK economy increase in the gross domestic product was found.
It was a result of different business options in which investments by the distinct entrepreneurs were made with an aim of receiving returns against the risk taken by them. two examples from the practical lives were taken which involves J.K. Rowling and Simon Cowel. They did excel in their field and shared some common characteristics like both of them were determined, believed in their ideas, remained focused and got success. They contributed a great share in the total economy of the nation and still working on raising their self-worth for their own satisfaction. it shows how an individual has to carry out with their dreams and should not give up in between until all the possible efforts are made.
Apart from this other role of this concept in UK economy were it assisted in raising the total infrastructure level and m reduced the unemployment rate from UK significantly. They brought tough competition which improved the capacities of the present resources as they were not wanted and were used to the maximum limit. It was found from the given text that the same benefit turns to be a negative contribution too as natural surroundings were affected because of the excessive use and hence needs control over their working.
Lastly, the essay summed up with how the UK has contributed to Entrepreneurship which is high in nature due to the presence of factors positive in nature such as technology, government, economy and infrastructure. Somehow, up and down in these factors have negative impact but these not exist for longer period of time. The different number of successful organisation which emerged with the help and support of these factors are named as city-mapper, Aston Martin and Unilever. The factor which has highest contribution behind the development is technology as this will help in maximum manner to gain success.
Books and Journals
- Coviello, N., 2010. International Entrepreneurship.Wiley International Encyclopedia of Marketing.
- Dennis Jr, W.J., 2011. Entrepreneurship, small business and public policy levers.Journal of Small Business Management.49(1). pp.92-106.
- Volkmann, C., Tokarski, K. and Ernst, K., 2012. Social entrepreneurship and social business.An Introduction and Discussion with Case Studies. Gabler. Wiesbaden.
- Congregado, E., Golpe, A.A. and Parker, S.C., 2012. The dynamics of entrepreneurship: hysteresis, business cycles and government policy.Empirical Economics.43(3). pp.1239-1261.
- Burns, P., 2016.Entrepreneurship and small business. Palgrave Macmillan Limited.
- Khalil, M.A. and Olafsen, E., 2010. Enabling innovative entrepreneurship through business incubation. In The Innovation for Development Report 2009–2010 (pp. 69-84). Palgrave Macmillan, London.
- Storey, D.J. and Greene, F.J., 2010.Small business and entrepreneurship. Financial Times/Prentice Hall.
- Bridge, S. and O'Neill, K., 2012.Understanding enterprise: Entrepreneurship and small business. Macmillan International Higher Education.
- Burns, P. and Dewhurst, J. eds., 2016.Small business and entrepreneurship. Macmillan International Higher Education.
- Burrows, R. ed., 2015.Deciphering the Enterprise Culture (Routledge Revivals): Entrepreneurship, Petty Capitalism and the Restructuring of Britain. Routledge.
- Freytag, A. and Thurik, R., 2010. Introducing entrepreneurship and culture. InEntrepreneurship and culture(pp. 1-8). Springer, Berlin, Heidelberg.