Here's my 2cents
Themes:
Bilbo's Heroism - The Hobbit's main theme is Bilbo's development into a hero, which more broadly represents the development of a common person into a hero. At the beginning of the story, Bilbo is timid, comfortable, and complacent in his secure little hole at Bag End. When Gandalf musters him into embarking on the quest with Thorin's dwarves, Bilbo becomes so frightened that he faints. But as the novel progresses, Bilbo prevails in the face of danger and adversity, justifying Gandalf's early claim that there is more to the little hobbit than meets the eye.
Bilbo possesses hidden reserves of inner strength that even Bilbo himself cannot perceive when he firsts sets out on the quest. Confronting the trolls, escaping with Gollum's ring, slaying the spider, rescuing the dwarves in Mirkwood, and speaking face-to-face with the great dragon Smaug all provide Bilbo with opportunities to test his resolve. As he builds confidence and resourcefulness, Bilbo emerges as a true hero.
Because Tolkien acknowledged that the idea of hobbits was rooted in his experiences with rural Englishmen of his own time, Bilbo's development might allegorically represent the heroism of England in World War I or the inner, latent heroism common to everyone. But given Tolkien's stated distaste for allegory—his main motivation for writing was storytelling, not the exploration of a literary theme—it is questionable whether Bilbo's story should be taken to refer to anyone except Bilbo himself.
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