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How British business saved the country and won the war
A case study for Ukraine. British entrepreneurs created a powerful military aviation industry under the bombardment of the Third Reich in just six months.
7 October, 2025
Economic history
Governance and Regulations
Politics & Law
Economic Freedom
War in Ukraine
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In-depth analysis of economic problems and the search for solutions primarily require drawing on economic theory. However, there are inexorable and vivid historical facts that confirm the effectiveness or fallacy of a particular economic theory. One of the most striking stories is how the British business managed to save its country and defeat the Nazis in World War II.
The parallels that immediately come to mind are not accidental. The full-scale Russian aggression against Ukraine has been going on for more than 3.5 years. Ukrainian society is increasingly experiencing pain, fatigue, and despair from the huge casualties, destruction, and lack of prospects for victory over the Moscow aggressor in the near future.
There is virtually no possibility for the complete liberation of all occupied Ukrainian lands. If this trend continues, the war will drag on for many years, there will be many times more deaths and injuries, and the likelihood of victory and a just peace will be even more vague.
What's the reason for it?
The answer is obvious: the enemy's huge advantage in firepower. The Ukrainian Defense Forces do not have enough military equipment, people, and ammunition to successfully attack and drive the Russian occupiers beyond the internationally recognized borders of Ukraine.
How did this happen? The answer is — State monopoly on weapons.
There is a widespread myth in Ukraine that defense against the enemy is the prerogative of exclusively state bodies and structures. The monopoly of officials on external security is the norm. After all, they say, it has always been so.
Is it really so? Let's look at historical facts.
Historical overview and modern economic and political parallels
So let's look at a very revealing and instructive case of the Battle of Britain: who and how broke the back of the German “Goering's aces”?
… So, it was World War II. It was the Summer of 1940.
On June 22, 1940, after the surrender of France, the United Kingdom found itself face-to-face with Hitler's Germany; in addition, Berlin's ally, Italy, entered the war.
In addition, the Soviet Union provided the Third Reich with all the necessary raw materials for warfare. And the people of Great Britain were left to fight the aggressors all alone, because all other countries of the Western Alliance were defeated.
The Wehrmacht significantly outnumbered the Armed Forces of the United Kingdom in terms of soldiers and equipment (a familiar situation, isn't it?). And the military and political leadership of the Third Reich was planning an amphibious assault on the British islands to occupy the country.
For the success of the Luftwaffe operation, it was necessary to seize air supremacy over the English Channel and Southeast England, and the British, accordingly, had to prevent this at all costs.
At first, it seemed that London was in a completely hopeless situation. The glaring failure of the officials with their 'appeasement policy'—doesn’t it remind you of anything?
Due to late preparations for the war and heavy losses during the battles in France and the Benelux countries, the Royal Air Force had few combat-ready aircraft. For example, while France built 2,113 aircraft in the first half of 1940, Britain built only 1,100.
Source: Galushka A., Brailian E. Conspiracy of Dictators. The division of Europe between Hitler and Stalin in 1939-1941. X, 2019, p. 244.
Most of them were already somewhat outdated Hawker Hurricane fighters, an aircraft developed by the private company Hawker Aircraft in 1934 (first flight in 1935). A year later, mass production began and continued until 1944. More than 14.5 thousand units were produced. This very aircraft was the backbone of the Royal Air Force's fighter aviation at the beginning of World War II.
By the way, over the years of its existence (1920-1963), Hawker Aircraft has developed almost 50 different types of aircraft.
But let's get back to fighters. At the beginning of July 1940, the Royal Air Force had 754 single-seat fighters, the Luftwaffe had 1107, two-seat fighters - 149 and 357, respectively, bombers - 560 and 1380.
Source: Galushka A., Brailian E. Conspiracy of Dictators. The division of Europe between Hitler and Stalin in 1939-1941. Kh., 2019, p. 244.
So it was necessary to build as many aircraft as possible, especially the latest 'Supermarine Spitfire'—probably the most successful fighter of that time.
This airplane was designed by Reginald Mitchell, an inventive genius who joined the private firm Kerr, Stuart & Co at the age of 16 and later joined Supermarine Aviation Works. During his life, he developed 24 models of airplanes.
Under his leadership, Supermarine Aviation Works first produced seaplanes for water racing. Later, the company moved on to designing and manufacturing transport vessels and bombers. Orders from abroad began to arrive (for example, from Australia).
However, at first, the production capacity of the British military industry did not allow for building the necessary number of aircraft to cover ongoing losses (let alone to expand the size of the Air Force). Only a miracle could save the country.
And it happened.
For example, if at the beginning of the Battle of Britain on August 11, 1940, London had 720 combat-ready fighters (of which only 240 were modern Spitfires), then twenty days later the Royal Air Force had 754 fighters. And this is considering that from August to early September, the British aviation lost about the same number of aircraft.
Source: Solonin M. The Battle of Britain. Hitler's First Defeat / The First Front. Part 4
So it was necessary to build as many aircraft as possible, especially the latest 'Supermarine Spitfire'—probably the most successful fighter of that time.
This airplane was designed by Reginald Mitchell, an inventive genius who joined the private firm Kerr, Stuart & Co at the age of 16 and later joined Supermarine Aviation Works. During his life, he developed 24 models of airplanes.
Under his leadership, Supermarine Aviation Works first produced seaplanes for water racing. Later, the company moved on to designing and manufacturing transport vessels and bombers. Orders from abroad began to arrive (for example, from Australia).
However, at first, the production capacity of the British military industry did not allow for building the necessary number of aircraft to cover ongoing losses (let alone to expand the size of the Air Force). Only a miracle could save the country.
And it happened.
For example, if at the beginning of the Battle of Britain on August 11, 1940, London had 720 combat-ready fighters (of which only 240 were modern Spitfires), then twenty days later the Royal Air Force had 754 fighters. And this is considering that from August to early September, the British aviation lost about the same number of aircraft.
Source: Solonin M. The Battle of Britain. Hitler's First Defeat / The First Front. Part 4
So what was this economic and industrial miracle?
But this miracle is only a first glance. Because the authors of this miracle have specific names - private companies and entrepreneurs.
One of them was William Maxwell Aitken, the first Baron Beaverbrook, a longtime acquaintance of British Prime Minister Winston Churchill. On May 14, 1940, Churchill appointed Aitken as Minister of Aircraft Production.
The old nepotism that Ukrainians are familiar with? But the old politician Churchill had many other good friends and acquaintances. However, he chose Beaverbrook, an entrepreneur and owner of the world's largest newspaper, the Daily Express: in the late 1930s, Aitken managed to squeeze even American publications, increasing his circulation to more than 2.5 million copies a day (in the 1940s, more than 4 million).
That is, there was no doubt about Beaverbrook's organizational skills as a businessman. When he was appointed minister, he knew nothing about aviation. But he knew exactly how to increase production quickly and efficiently to meet demand.
On July 10, 1940, Baron Beaverbrook invited every British citizen to become a sponsor of the future victory. Aluminum was needed to build airplanes, so the "pots for Spitfire" campaign was launched. The Daily Express published calls for citizens to donate voluntarily their aluminum kitchen utensils.
Aitken was one of the first to realize that to maintain and increase aircraft production, it was necessary to disperse the production capacity of aircraft plants. Supermarine also came to the same conclusion. In September, the company started replacing the location of its workshops and moving to new locations. At the end of the month, due to constant Luftwaffe raids, production was completely dispersed.
By the way, what has been done in Ukraine to disperse the production of aircraft to minimize losses from Russian bombing? I wonder what combat aircraft have been designed and produced in Ukraine over the 34 years of independence, which has technology to manufacture aircraft?
According to the Ukrainian encyclopedia, the only flying An-70 in January 2015 was adopted by the Air Force of the Armed Forces of Ukraine. The completion of two more AN-70s at the Kyiv aircraft plant was complicated because a number of important components for these aircraft are Russian-made.
At the same time, in 2005, the State Aircraft Corporation "Antonov National Association" was established. In March 2007, the corporation was liquidated, and the Aviation of Ukraine Concern was created instead. It included the Antonov State Enterprise, the Antonov Production Plant, the Kharkiv State Aviation Production Enterprise, and the State Enterprise Plant 410 of Civil Aviation (an aircraft repair enterprise). Since 2015, all of these have been part of the State Concern "UkrOboronProm".
The situation is similar for all types of heavy weapons. Because officials have banned businesses from doing so. UkrOboronProm, the state-owned concern, could not do anything real in this area, but only imitated the activity. Therefore, there is nothing to disperse. It is better to walk around the world with an open hand. Or maybe we should let entrepreneurs do it, like in Britain?
At the same time, in 2005, the State Aircraft Corporation "Antonov National Association" was established. In March 2007, the corporation was liquidated, and the Aviation of Ukraine Concern was created instead. It included the Antonov State Enterprise, the Antonov Production Plant, the Kharkiv State Aviation Production Enterprise, and the State Enterprise Plant 410 of Civil Aviation (an aircraft repair enterprise). Since 2015, all of these have been part of the State Concern "UkrOboronProm".
The situation is similar for all types of heavy weapons. Because officials have banned businesses from doing so. UkrOboronProm, the state-owned concern, could not do anything real in this area, but only imitated the activity. Therefore, there is nothing to disperse. It is better to walk around the world with an open hand. Or maybe we should let entrepreneurs do it, like in Britain?
Baron Beaverbrook once remarked:
L"The war is a war of machines; it will be won on the assembly line."L
Indeed, the British won their first and most important victory at the aircraft factories.Mr. Beaverbrook's work can be easily seen in the statistics of airplane production in the United Kingdom. While in March 1940 the British industry produced 177 airplanes per month, in May it was already 325, in June – 446, in July – 496.
Later, the production rate only increased. Aviation factories worked several shifts, continuously, to provide the Air Force with new airplanes. Half a million people came to work at the Beaverbrook factories during the year. In July-August 1940, airplane production increased by 56 %.
Source: Galushka A., Brailian E. Conspiracy of Dictators. The division of Europe between Hitler and Stalin in 1939-1941. Kh., 2019, p. 244.
And this all happened under round-the-clock bombardment by German troops.
Lord Dowding, head of the British Air Force Fighter Command, recalled:
L"…We had the organization, we had the men, we had the spirit that could bring us victory in the air, but we did not have the supply of machines necessary to withstand the exhaustion of continuous battle. Lord Beaverbrook gave us those machines, and I don't think I'm exaggerating when I say that no other man in England could have done that."L
Thus, the British quickly caught up with and overtook the Germans in aircraft production. For comparison, from June to October 1940, 919 Messerschmitt Bf 109s were produced, while 731 Spitfires and 1334 Hurricanes were produced.
From June to October 1940, the Royal Air Force lost 915 fighters but produced 2,091. The Germans lost 1,733 aircraft but built only 988 single-engine fighters.
Source: Galushka A., Brailian E. Conspiracy of Dictators. The division of Europe between Hitler and Stalin in 1939-1941. Kh., 2019, p. 268.
During the Second World War, British entrepreneurs produced more than 20 thousand Spitfire aircraft.
Moreover, despite constant and relentless bombings by the Luftwaffe, British engineers managed to design and begin producing jet aircraft. The first of these was the legendary Gloster Meteor — the only turbojet fighter of the Allies that saw action in World War II.
The world's first jet engine and the very concept of the airplane were developed by inventor and businessman Sir Frank Whittle. To put his ideas into practice, he founded the private company Power Jets in 1936. Another private company, British Thomson-Houston, helped with this by providing industrial sites. Serial production of the actual turbojet engines was delegated to the factories of the legendary Rolls-Royce. It is not surprising - since its founding in 1906, engine production has been Rolls-Royce's main specialization.
On May 15, 1941, the first British jet aircraft made its first successful flight. After a series of tests and modifications, the Gloster Meteor was officially adopted by the Royal Air Force on July 12, 1944.
By the end of the war and in subsequent years, more than 3.5 thousand Meteors were produced.
Can the military industry be private?
In the first half of the twentieth century, almost the entire aviation industry in the United Kingdom was a purely private affair. That's why it developed so quickly.
Today's heavily regulated, monopolized, and nationalized business has never even dreamed of such a frantic pace of development.
The first airlines in the United Kingdom appeared before the outbreak of World War I. Only large corporations had several dozen private firms: Short Brothers plc, Bristol Aeroplane Company (British and Colonial Aeroplane Company), Gloster Aircraft Company, Vickers-Armstrongs, Boulton & Paul Ltd (Boulton Paul Aircraft), Blackburn Aircraft Limited, General Aircraft Limited, Airspeed Limited, Saunders-Roe Limited (Saro), etc.
Due to relatively weak government restrictions and competition within the country and with foreign private aircraft manufacturers, this technology business developed incredibly fast: from wooden, slow-moving biplanes of the First World War to jet fighters of the Second World War.
The results of the business approach of entrepreneurs in the defense industry of the United Kingdom were not long in coming: in October 1940, the Germans stopped daytime raids on the British islands, resorting only to nighttime terrorism.
As a result of the Battle of Britain, the Luftwaffe's backbone was broken: the Nazis lost several times as many planes and pilots as the Royal Air Force and canceled the Sea Lion landing operation. The following year, British aircraft began regular raids on German military factories and ports.
The Third Reich found itself in a strategic impasse, never finding a way out. It was the beginning of the defeat of Nazi Germany in World War II and the basis for the victory of the anti-Hitler coalition.
Conclusions
It was a talented business magnate, young inventive geniuses, and private aircraft manufacturers who helped Britain defeat the Nazis. Despite the widespread belief that the UK survived thanks to Prime Minister Winston Churchill, it was businessmen and entrepreneurs who saved the country from the Nazis. This experience can help Ukraine's fight against the Russian aggressor.Share
The war in Ukraine has been going on since 2014. What new types of aircraft have been developed and adopted by the Ukrainian Air Force during this time? You know the answer - none.
Since the declaration of Ukraine's independence, the aviation industry has been a state monopoly and remains closed to business.
So maybe we should go the other way and involve entrepreneurs in improving the country's defense capabilities and developing strategic industries, as was the case in Britain? Only recently, out of complete desperation, the state has partially allowed the private sector to manufacture drones, and that's all.
Can you imagine how many airplanes Ukraine would have if the government allowed businesses to produce them? How would this affect the course of the war? And would Russia have risked attacking us at all? And how long would this war have lasted?
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Topics
Economic history
Governance and Regulations
Politics & Law
Economic Freedom
War in Ukraine
Kyrylo Kashtanov
Candidate of Historical Sciences, a supporter of freedom. Specializes in the history of international trade, modern history, and economic history. There is significant evidence of work in the media and publishing sphere. Works on the influence of historical awareness, ideas of freedom, philosophy of AES in the media space.
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