Entrepreneurship: Analysis of Macro Environment and Entrepreneurial Skills

This essay analyzes macro environment of business with the help of best framework. It also identifies skills and trades of an entrepreneur which can be helpful in strengthening business position in the industry. The essay determines the trades which enables successful launch of a business in UK.

ENTREPRENEURSHIP

Table of Contents
INTRODUCTION....................................................................................................................3
MAIN BODY............................................................................................................................3
CONCLUSION.........................................................................................................................7
REFERENCES.........................................................................................................................9

INTRODUCTION
Entrepreneurship is the ability to develop, organize and operator business enterprise
along with uncertainties in order to generate profit. Entrepreneur is it individual who have the
ability and desire to start new business venture with the objective of minimizing risk and
maximizing profit. Entrepreneur plays a key role in an economy as they can use their skills
can bring new ideas to the market through which development can be done (Entrepreneur,
2021). Some of the most famous entrepreneurs are- Bill Gates, Steve Jobs, Mark Zuckerberg,
Jeff Bezos and many others. This essay will analyze macro environment of business with the
help of best framework. The essay will also identify skills and trades of an entrepreneur
which can be helpful Co strengthening business position in the industry. The essay will also
determine the trades which enables successful launch of a business in UK.
MAIN BODY
PEST analysis is an approach which is used to understand the external factors which
can influence business functions and operations. The factors which are identified with the
help of this framework are-political, economic, social and technological factors. The
framework was developed by Francis J. Aguilar in 1967 which is the approach for scanning
the business environment which comprises of different macro environment components
which are responsible to create positive and negative impact. PEST analysis is the framework
which can be used to assess major external factors which influence business operations in
order to make business more competitive in the industry. A detailed PEST analysis of macro
environment of UK, has been discussed below:
Political factors- UK is constitutional monarchy which is operating under the control
of parliament. By following fair practices, the country is able to attract greater number of
opportunities which is also helpful in building a strong image. Due to global pandemic,
government has increased the tax which will be helpful in paying for pandemic deficit. The
government of UK is also following green initiative which is helpful in creating positive
impact on the overall economy of UK. Political stability is the strength of UK whereas,
Brexit made the company of UK face various uncertainties (Ateljevic and Page, 2017). Some
of the other political factors, such as- corruption, uncertainty due to Brexit are those factors
which are responsible to create an adverse impact on the operations of business and overall
economy of UK. For example, Marks & Spencer is operating with more than 1300 stores and
the headquarters of the brand is in UK. The company gain various benefits through EC trade

agreements which is helpful in decreasing the sourcing cost. The two major political factors,
which influence the brand are- taxes and political stability.
Economic factors- The estimated nominal GDP is responsible for enhancing the
competitive global position of the economy of UK. Diversity is ne of the main driver of
success of the economy of UK. Due to diversity, it offers various business growth
opportunities and is also helpful in adding value to business. Increase in inflation rate is also
responsible to create an impact on the macro environment of UK. Due to the global pandemic
this has increased the unemployment rate of the UK economy. UK have strong economic
position as with diversity and GDP the economy is more profitable and successful in
comparison to other economies (Audretsch, Kuratko and Link, 2015). The larger number of
populations in UK is allowing smaller markets to be more profitable and this it is also helpful
in increasing the foreign direct investment. The market of UK is making slow recovery from
the 2008/2009 economic recession. The economy of UK is also involved in spending greater
amount of financial capital by offering free public services. For example, due to low
disposable income of population, this decreases the demand of products offered by Marks &
Spencer as such factors reduces the spending potential of buyers.
Social factors- The population of UK is increasing which leads to increase in labor
market and healthcare system. Some of the companies such as insurance real estate and
healthcare industries can gain profit from incline in population. Due to increased consumer
interest in health insurance, the healthcare system of UK had made progress in terms of
providing quality services to their patients. The education system of UK is also updated
annually weather all latest information and modern mythologies of learning and teaching.
The educational certificate in degrees switch on even by the institutes love you care
recognized throughout the world. Due to incline in an employment rate the income level of
people was decreased whereas falling unemployment rate and reasonable inflation rate made
the citizens of UK in high income earners (Blundel and et.al, 2021). As various free public
services such as- National Health Service are offered to population of UK, this creates a
positive impact on the economy of UK. The social factors have also enhanced the standards
of living and the economy is open for migration, this offers cheap workforce. As the British
education is attracting attention, this has ben responsible for incline in educational cost and
social factors are also responsible for increasing the dependency ratio. The concept of social
class has consistently influenced the UK, despite the fact that the population is multicultural.
Over the years, businesses have created a variety of new commodities and marketplaces to

fulfil the needs of people of many races and religions. There are still a lot of opportunities for
firms to look into. For example, Marks and Spencer has been able to overcome challenge by
dominating the ready-to-eat food market. Ready-to-eat meals have become more popular in
the United Kingdom and across the world. Marks and Spencer is currently one of the most
well-known ready-meal retailers in the United Kingdom.
Technological factors- UK have leading research and development institutes which
helps the industries operating in UK to face barriers and is also helpful in offering greater
opportunities to entrepreneurs for business success. As an economically developed country,
Uk have strong access to technology which helps the business and industries operating in UK
to gave expertise in IT and science and through which they can bring quality innovation to
their business. such technological advancements are also helpful in enforcing effective laws
in relation to intellectual property and increases internal competition which helps in
stimulating growth (Dana, 2021). The technology is rapidly developing and in comparison, to
US, the economy of UK has been following slow technological development. For example,
Marks & Spencer is making use of modern technology to maintain their position in
digitalized economy through which they can also diversify customer experience. The
company is focusing on developing new technology model which will be helpful in adopting
agile methods and techniques.
Skills and traits of entrepreneurs
Entrepreneurial skills involve various skill set such as leadership, motivation, business
management, time management, problem solving and creative thinking are some of the types
of skills. Entrepreneurial skill plays a crucial role in bringing innovation, fostering business
growth and enhancing the competitiveness of business venture within the industry. Some of
the skills and traits which can be helpful for an entrepreneur to make their way and to make
their business successful, are addressed below:
Vision- As an entrepreneur, being visionary is an effective skill which will be helpful
in planning and organizing the work according to the vison through which objectives can be
met (Fortunato and Alter, 2015). A successful entrepreneur always focuses on the big picture
and such visionary skills supports strategic planning through which the entrepreneur can plan
strategies which will be helpful in performing business activities effectively. Such visionary
skill helps in gaining competitive advantage and maximize the profitability of venture in
dynamic business environment.

Motivation- hard working entrepreneurs are self-motivated to succeed in their
business venture. As an entrepreneur, being enthusiastic and self-motivated is an essential
entrepreneurial skill or trait which will help them in performing effectively through which
business operations can be effectively carried out and this will also support in developing
competitive brand image of the company within the industry.
Creativity- creativity skill the backbone for driving innovation in the new business
venture through which business can maximize their profitability and create a unique value in
the industry. Entrepreneurs with creative thinking skills try different solutions and have no
fear of failure which helps in understanding a new perspective (Frederick, O'Connor and
Kuratko, 2018). Such creative skills allow entrepreneurs to see new patterns, develop
innovative ideas and approaches to resolve business issues through which unique business
value can be created and this will also support in establishing competitive business position.
Leadership traits- leadership is the ability to guide others. An effective leader his
helpful in directing in the right direction through which business can make progress towards
their achievement of organizational objectives and maximize their profitability. As an
effective entrepreneur and business leaders and entrepreneur must learn from their experience
hills which will help them improving play leadership style ten search development well bring
positive change to the organization which will support in business growth. Entrepreneurship
often requires securing and nurturing investor relationships, as well as controlling employees
and monitoring operations. An entrepreneur must be an excellent leader to be successful in
these activities.
Problem solving- A entrepreneur face various challenges and unexpected situations
while operating their business venture and problem-solving skill plays a vital role in making
business successful by handling stressful situations calmly and by identifying alternative
solutions. With the help of effective problem-solving skills this will ensure the business
venture in meeting their business objectives.
Communication and active listening- This skill is essential for an entrepreneur as
such skills helps them in effectively interacting with customers and understand their demands
through which their demands can be met (Hjorth, Holt and Steyaert, 2015). Strong
communication and active listening skills are helpful in strengthening consumer base and
retaining customer for longer period. As an entrepreneur, active listening is an essential skill
which can support in understanding project requirements and engage actively in discussions.

Networking- Networking skills is built on communication sills which involves
building and managing relationship with people in professional manner through which they
can promote and support business growth and development. As an entrepreneur, effective
networking skills are helpful in attracting future opportunities and helps in building strong
brand presence. With the help of strong networking skills, this allows entrepreneurs to
connect with similar minded-people, build future teams and is also helpful in being updated
in relation to the changing trends in the industry (Olanrewaju and et.al, 2020). Such skills are
also helpful for entrepreneurs, as this c nabe make them access to professional business
expertise and get feedback for better management of operation of their new business venture
through which they can make steady progress towards the growth and development of
business venture.
Risk taking- As an entrepreneur, the ability to take calculated risk can support them
in creating unique value and maximizing business profitability. As an entrepreneur, they must
understand the value of taking risk which can make business face threat or drive huge
opportunities for growth through which potential profits and gains can be targeted.
For example, Jack Ma is the founder of Alibaba which is the leading e-commerce web
portals. The entrepreneur overlooked the value of digitalization and implemented that
technological advancement through their business. The entrepreneur defined such visionary
approach of starting a business venture and showed his leadership skill through managing
people to work for the e-commerce company which helped in making progress towards
success of the organization (Welter and Gartner, 2016). Jack Ma applied to various
companies for different jobs and later realized to start his venture through his vison after
observing the incline in advancement of technology and digitalization which later turned into
reality. The entrepreneur values attitude and has united people under a single objective which
showed his collaborative skills of leading the whole organization to meet organizational
objective.
CONCLUSION
From the above essay, it can be concluded that entrepreneurship is the act of starting
anew business venture by evaluating risk through which the new business venture can
maximize business profitability. Entrepreneurship is the skill which helps in creating value
for business by bringing innovative ideas and approaches which can be used for growth and
development of business. Entrepreneurial skills are the traits and skills which helps an

entrepreneur to bring innovative approaches and make use of leadership skills through which
an entrepreneur can differentiate their business among competitors and maximize their
profitability. Some of the entrepreneurial skills, such as- risk taking ability, leadership skills,
self-motivation and networking skills helps an entrepreneur to create unique value of business
through which the venture can face competition and maintain their competitive position
within the dynamic industry.

REFERENCES
Books and journals
Ateljevic, J. and Page, S. J. eds., 2017. Tourism and entrepreneurship. Routledge.
Audretsch, D. B., Kuratko, D. F. and Link, A. N., 2015. Making sense of the elusive
paradigm of entrepreneurship. Small Business Economics. 45(4). pp.703-712.
Blundel, R and et.al., 2021. Exploring entrepreneurship. Sage.
Dana, L. P. ed., 2021. World encyclopedia of entrepreneurship. Edward Elgar Publishing.
Fortunato, M. W. and Alter, T., 2015. Community entrepreneurship development: an
introduction. Community Development. 46(5). pp.444-455.
Frederick, H., O'Connor, A. and Kuratko, D. F., 2018. Entrepreneurship. Cengage AU.
Hjorth, D., Holt, R. and Steyaert, C., 2015. Entrepreneurship and process
studies. International Small Business Journal. 33(6). pp.599-611.
Olanrewaju, A. S. T and et.al., 2020. Social media and entrepreneurship research: A literature
review. International Journal of Information Management. 50. pp.90-110.
Welter, F. and Gartner, W. B. eds., 2016. A research agenda for entrepreneurship and
context. Edward Elgar Publishing.
Online
Entrepreneur, 2021 [Online]. Available through
<https://www.investopedia.com/terms/e/entrepreneur.asp>