Write an individual report examining a country of your choice and critically evaluate the systems, structures and institutions which support entrepreneurship utilising relevant models and theories. Use at least two real-world examples.
Read the scenario below before undertaking the tasks which follow:
You will need to write an individual report examining entrepreneurship in a country of your choice. You will need to collect and assess current and relevant information and statistical data on how the country is supporting entrepreneurship.
You will need to:
- Select a country to conduct your research and investigation.
- Examine the structures and systems which support and hinder Entrepreneurship.
- Examine the role of Entrepreneurship within the selected country.
- Examine the geographical development of Entrepreneurship within the selected country.
- Apply relevant Entrepreneurship models and theories to support your work.
- Apply at least two relevant / current exaples of Entrepreneurship within the selected country.
Structures and systems in relation to Entrepreneurship
Entrepreneurship refers to process of the launching and running of a new business that is often initially a small business. It is indicative of the capacity along with willingness of developing and managing a business venture that can help a business in making profit. There are high risks that are involved in launching start-up and a large part of the start-up business have to close down owing to lack of the funding and the bad business decisions (Dees 2017). An Entrepreneur has the ability of acting upon an opportunity that can help in translating inventions into that of the new products. An entrepreneur is able to recognize commercial potential in relation to invention and organize talent that can help in turning an invention into that of a commercially viable innovation. An entrepreneur plays an important role in bringing about the economic growth of a country and it can help in improving standard of living within a country. The role of entrepreneurs revolves around setting up the new business along with the industrial units that paves the path for infrastructure improvements. This report discusses about the structure and the system in UK that can support or hinder the aspect of entrepreneurship in the country. The report also elaborates on the geographical development in relation to Entrepreneurship in UK. The report also provides the examples of real-world examples of entrepreneurship within UK.
The government of a country should focus on growing the existing industries and start building on their foundation along with skills that can help in encouraging the aspect of entrepreneurship of a country. The private sectors should be engaged by the government from start that can help in supporting the element of entrepreneurship of a country. The government of a country having an anti-competitive culture can help in hindering the growth of entrepreneurship in a country. The unfair taxation being removed in a country can be instrumental in encouraging entrepreneurship within a country. The government structure that can help in encouraging entrepreneurship pertains to grants, tax incentives along with support programs. The government of a country pursuing “growth oriented approach” can help in fostering the growth of the entrepreneurs in a country (Businesscloud.co.uk 2018). The government ministers can play an important role in directing government departments that can help in developing effective policies in relation to Entrepreneurship. The policies of the government should be broadly focussed and it should be holistic that can help in creating entrepreneurs in a country. The government should develop the policies that can help in addressing needs of both business along with management team that can support entrepreneurship in a country.
Entrepreneurship in a country is hindered owing to its culture along with education system. The culture prevailing in a country that lays more stress on myths hinders the entrepreneurs of a country. The entrepreneurship of a country is hindered in the countries where failure is viewed as a very negative aspect in those countries (Centreforentrepreneurs.org 2018). The system prevailing in a country that does not value risks proves to be instrumental in developing entrepreneurship within a country. Corruption is another important factor that has an effect on the element of entrepreneurship in a country. The regional disparities occurring within a country can act as a barrier in the path of entrepreneurs of a country. The non-availability of the aspect of capital acts as a hindrance in the path of entrepreneurship of a country.
Role of Entrepreneurship in UK
Statistics have pointed out to the fact that the small business of UK have been able to contribute huge amount of 1.9 trillion pound in the economy of UK. The small businesses are instrumental in providing vital services to that of the local communities in UK. The entrepreneurs helps the large companies in UK in running business in an efficient manner. The big business in UK understand significance of the entrepreneurs when the essentials are sourced in relation to catering along with stationery. The significance of entrepreneurship within the job market of UK is increasing at a steady pace. The jobs within the local companies can help those who are not able to commute in contributing to the economy of UK (Dees 2017). Entrepreneurship helps in providing the university graduates first step pertaining to career ladder. The job roles within the small business are more flexible and entrepreneurs can help in providing a work environment that is less formal. The independent business within UK helps in attracting dedicated staff who can aid in the growth of a business. In the event of many entrepreneurs, running business in an independent manner they can help in providing a service that is more personal as compared to the multi-chain companies. The entrepreneurs gets involved in the local events of UK that helps in improving the aspect of community spirit of a country (Kirzner 2015). The entrepreneurs help in driving the aspect of wealth creation along with productivity within the economy of UK. The high growth firms in UK are mainly small business and they help in driving innovation of a country. The entrepreneurs have succeeded in introducing new technologies that have paved the path for the creation of countless industries (Preuss and Dyerson 2017). Entrepreneurship has succeeded in improving quality of life of the people living in UK. On the other hand, it is also said that entrepreneurs can add to the problems that impairs progress made in the societies of UK. It is also pointed out by some researchers that entrepreneurship does not always act as a productive force in the society of UK. The independent entrepreneurs in UK articulates the social needs and they make use of their skills for addressing the needs (Storey 2016).
Talent concentration in UK can be said to be associated with that of entrepreneurial activity along with culture. The distribution pertaining to human capital that is called talent acts as a significant factor in relation to locational decisions of the firms and it helps in driving the economic growth of UK. It has been found that talent is distributed in an unequal manner across the various cities of UK and there exist some places within UK that have more educated workers as compared to the rest of the parts of UK (Drucker 2014). There is huge amount of talent that that of the city level that paves the path for more amount of entrepreneurial activity. This has paved the way for the creation of knowledge-based industries in various places within UK.
Geographical Development of Entrepreneurship in UK
Oxford within UK has promoted many industries as there are a large number of people in Oxford who have the requisite amount of knowledge that is required for entrepreneurship. There are other places like Inverness within Scotland along with Cambridge that acts as attractive place in relation to the new business ventures (Kuratko 2016). Official data has revealed the fact that the Britons are involved in the launching of new business in that of record numbers. It has been brought out with the help of research that there were 657,790 start-ups that were registered with that of Companies House in the year 2016 (Businesscloud.co.uk 2018).
London has high quality pertaining to entrepreneurial support structure that makes it outperform as compared to that of rest of country (Cooper and Folta 2017). There are other areas in UK that are also thriving like the cities of Manchester, Edinburgh along with Glasgow that act as the top performers whereas the cities like Watford, Warrington along with Luton that have high start-up rate as compared to their small population (Parker 2018). It suggests that these cities are drawing on the factor of dynamism existing in the nearby cities. There are seaside towns like Brighton along with Poole that witness the aspect of rising entrepreneurial tide in UK (Burns 2016). The remote coastal along with rural areas act as poor performer in relation to entrepreneurship in UK.
Figure: Number of Entrepreneurs in UK
Source: Businesscloud.co.uk 2018
Report brought out by Centre for Entrepreneurs have brought out that record number of business has been launched in UK in last year and London had opened the maximum number of business in UK (Kazanjian, Drazin and Glynn 2017). London has the thriving financial hub and it has the vibrant culture that augments the growth of entrepreneurs in the region.
James Dyson worked on the vacuum cleaner and he was able to build a company of his own. James Dyson has been provided with knighthood and he was able to buy more land as compared to the Queen. James Dyson has been able to gain personal fortune that was around 2.8 billion pound. The company of Dyson comprises of more than that of 1000 engineers and it has been able to maintain the market position with the help of constant research along with development.
Richard Branson built on the success of his record shop and he started record label called Virgin Records. Branson started off with the music industry but later on he branched out to various eclectic collections which includes Virgin Airways, Virgin Holidays, Virgin Active and Virgin Media. The career path of Richard Branson has been able to win him a prominent position in that of UK. Branson has been able to amass fortune whose net worth was around 3.6 billion pound.
Figure: Track Record of Virgin Atlantic Airways
Source: Virgin.com 2018
- The entrepreneur can restructure the portfolio pertaining to income that can act to the benefit of the entrepreneurs. Portfolio diversification carries its own share of the benefits but the growth component of portfolio can be ratcheted down. It can help the business of the entrepreneur in becoming main growth component in relation to the overall portfolio.
- The challenges and the risks can be handled by the aspect of rebalancing on that of income-based investments. It can also be recommended that entrepreneurs can use the capital in the savings accounts that can help in the funding of business (Daskalaki, Hjorth and Mair 2015). Restructuring of investment portfolio of investor can help in mitigating the aspect of savings depletion of the entrepreneurs. It can also be suggested that entrepreneurs should start the business with very few liabilities.
- The risk can be mitigated by the creation of solid financial projection and one can work directly with the financial advisor that can help in construction of cash flow projection in relation to the life of the entrepreneur (Chell et al. 2016). The entrepreneur can also sell off the important items that can help him in handling the challenges in relation to entrepreneurship. The entrepreneurs in UK can perform risk analysis by the evaluation of effects in relation to the risky activities.
- The entrepreneurs can take recourse to quality assurance program that can help in the reduction of risk in relation to product failure. The entrepreneurs should identify the problems by taking recourse to the system of customer service.
Entrepreneurship is indicative of process that can help in starting a new business. Entrepreneurship refers to the capacity of an individual for managing a business which can be useful for a business and help it in making profits. The anti-competitive culture existing within a country can hinder growth of the business. Unfair taxation should be removed in country that can encourage the aspect of entrepreneurship of a country. The entrepreneurs in UK by the introduction of the new technologies can help in the growing of various business in UK. Entrepreneurship can improve the quality of life of the people and it can pave the path for economic development of a country. The talent concentration within UK can be said to be related to the aspect of entrepreneurial activity. Talent is an important attribute which can be instrumental in driving economic growth of a country. Oxford helps in the promotion of various industries and there are many people in UK who possess the skills of entrepreneurship. The places in UK like Inverness and that of Scotland helps in the starting of new business ventures. The restructuring of portfolio of entrepreneurs can be useful for the entrepreneurs in UK.
Burns, P., 2016. Entrepreneurship and small business. Palgrave Macmillan Limited.
Businesscloud.co.uk 2018. Most entrepreneurial cities in the UK revealed. [online] BusinessCloud.co.uk. Available at: https://www.businesscloud.co.uk/news/most-entrepreneurial-cities-in-the-uk-revealed [Accessed 17 Dec. 2018].
Centreforentrepreneurs.org 2018. How entrepreneurial was the UK in 2015? - The Centre for Entrepreneurs. [online] The Centre for Entrepreneurs. Available at: https://centreforentrepreneurs.org/how-entrepreneurial-was-the-uk-in-2015/ [Accessed 17 Dec. 2018].
Chell, E., Spence, L.J., Perrini, F. and Harris, J.D., 2016. Social entrepreneurship and business ethics: Does social equal ethical?. Journal of business ethics, 133(4), pp.619-625.
Cooper, A. and Folta, T., 2017. Entrepreneurship and high?technology clusters. The Blackwell handbook of entrepreneurship, pp.348-367.
Daskalaki, M., Hjorth, D. and Mair, J., 2015. Are entrepreneurship, communities, and social transformation related?. Journal of Management Inquiry, 24(4), pp.419-423.
Dees, J.G., 2017. 1 The Meaning of Social Entrepreneurship. In Case Studies in Social Entrepreneurship and Sustainability(pp. 34-42). Routledge.
Drucker, P., 2014. Innovation and entrepreneurship. Routledge.
Kazanjian, R.K., Drazin, R. and Glynn, M.A., 2017. Implementing strategies for corporate entrepreneurship: A knowledge?based perspective. Strategic entrepreneurship: Creating a new mindset, pp.173-199.
Kirzner, I.M., 2015. Competition and entrepreneurship. University of Chicago press.
Kuratko, D.F., 2016. Entrepreneurship: Theory, process, and practice. Cengage Learning.
Parker, S.C., 2018. The economics of entrepreneurship. Cambridge University Press.
Preuss, L. and Dyerson, R., 2017. The nexus of innovation, entrepreneurship and sustainability: making the case for a multi-level approach............................... Royal Holloway University of London, UK. In Entrepreneurship, Innovation and Sustainability (pp. 22-41). Routledge.
Storey, D.J., 2016. Entrepreneurship and new firm. Routledge.
Virgin.com (2018). Home page. [online] Virgin. Available at: https://www.virgin.com/ [Accessed 17 Dec. 2018].
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