The Importance of Entrepreneurship in a Global Economy

Interest in starting up a new business and self-employment is growing in the UK and in many other countries, especially in Africa, India and Brazil where new small businesses are the only way that their large population of young people will be employed.   

Here is some sample data about the UK business profile provided by Department for Business, Innovation & Skills. There were a record 5.7 million private sector businesses at the start of 2017 which is an increase of 197,000 since 2016, and 2.2 million more than in 2000. Small businesses accounted for 99.3% of all private sector businesses at the start of 2017 and 99.9% were small or medium-sized (SMEs). Total employment in SMEs was 16.1 million; 60% of all private sector employment. 

New research released today reveals that more Brits than ever before want to start their own business in 2018. A survey of British working people, carried out by FreeAgent, found that 18 per cent of Londoners intend to start their own business within the year of 2018.

With over 32 million people currently working in the UK, according to a Office of National Statistics (ONS) analysis, 3.5 million (11 percent) Brits are expected to become their own boss before the start of 2019.

The main reasons offered by many young people for starting a new business are:

  • Wanting to following your passion 

  • Wanting to choose the type of work that you do

  • Better work / life balance 

  • Loss of trust in big business - a clash in values

It is clear that the long-term future of the global economy depends on being able to improve the success rate of small businesses and new entrepreneurial ventures.

A major factor in assessing the role of business in society today is that business has become a multicultural, global operation. With the advent of global communications facilities, Internet trading, access to manufacturing and service resources in places like China and India the world is truly the marketplace even for small businesses. This global expansion has cultural and ethical consequences.