Entrepreneurship and its Impact on UK Macro Environment

This report discusses the impact of Covid-19 on the macro environment of the UK and identifies relevant skills and traits for launching a successful business in the UK. It includes a PEST analysis and relevant examples of other entrepreneurs.

ENTREPRENEURSHIP

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
CONCLUSION................................................................................................................................3
REFERENCES................................................................................................................................1

INTRODUCTION
Entrepreneurship is refers as the readiness and ability for developing and organising the
business in order to run the business enterprise . Also, there are some uncertainties in context to
making profit (Aldrich, 2017). After the Covid-19 there are so many effects that are seen in the
business because of technology changing and environment become competitive. There are 50%
to 80% entrepreneur impacted by Covid in order to decreases the market value. The report
conducted PEST analysis which are impacted macro environment and also identifying relevant
skills on the basis of their traits. Further, recognising skills and trend that are enable for
launching new business in UK and explaining with the help of relevant examples of other
entrepreneur.
MAIN BODY
PEST analysis of UK macro environment
Macro environment is the set of situation or condition which are exist in the economy as
the whole as compared to particular sector. There are so many factor which are involve in the
macro environment such as inflation, GDP(gross domestic product), employments, monetary an
fiscal policy. The whole economy is affected due to Covid-19 in which these factors are as
follows, political, economic, social and Technological (Ács and Lloyd, 2017). There are
different aspect of these factors. Due to Covid-19 there various kind of impact is seen on the
political stability of UK economy because of Brexit there are some uncertainties which creates
chaos and there are large number of people who have lost their job and also crime and violence
were increases there were many people who were died because of pandemic. The death rate were
increases from 20% in UK that is why government has taken some related action in order to open
new hospitals so that their local people can take medication from there. Also, The import and
export were restricted so that there is exchange of goods out of the country. Entrepreneur's
business has impacted due to possible trade barrier for protecting the domestic supplier and this
negative impact is decreases the GDP of the country.
Economic factor has been analysed that there are UK is the sixth largest economy in the
world for nominal GDP, also the global lockdown of the year 2021 and 2020 has putting
enormous pressure on the business (Doern, Williams and Vorley, 2019). Further, Bank of
England forced for an extra 100 billion for the economy of the year 2020. The report has been
analysed that UK economy has the strong back which is evidence for the household saving. The

tax rate is increasing that is why entrepreneur has faces the problem regarding export of gold,
cars, tribune, petroleum etc. There are large number of tourist are attract because of broadcasting
equipment and there were large number of students are come for contributing the economy. For
example, Amazon is one of the largest company that leading online business globally, because of
Covid Jeff Bezos affected due to decreases in sale by 70% (Liguori and Winkler, 2020). There
were no option of delivering the product because of the lockdown. The old stock of the company
is not sold from 2 years and after lockdown there were no money to the people who can spent on
clothing and accessory that is why many organisation has affected badly.
There are social factors which are impacted on the economy as well as entrepreneur, UK
is one of the biggest consumer market. In an organisation there are s0o many people who are
affected because of pandemic in context to their health the labour market is very much affected
and that is why the productivity of the business is decreasing. Entrepreneur are not able to help
those people because there were no situation of doing for the same (Ward, Hernández-Sánchez
and Sánchez-García, 2019). Also, the culture of people are changed and employees are expected
to do work from home. This the advantage for company as well as organisation but on other hand
there were decreasing in productivity because entrepreneur are not able to provide the proper
training to employees.
Technological factor is one of the important factor for the organisation there are large
number of technology adopted due to pandemic such as sanitisation machine in each business.
This help for major contribution to the economy and UK is most advanced in the whole world.
London is also known for the great hub for technological and financial institutions. Technology
is help for increasing the ability of the business with the help of communicating with them, Also
there are fast shipment which are help for exporting the product in the less time. For example,
Tesco leads its business in all over the world that is why it is important to adopt those technology
which are help for delivering the product at the right time. After the pandemic there are more and
more people who are likely avoid interaction with people because of there safety (Bazkiaei and
Kasim, 2020). That is why Tesco has increases its online business which are help to increase the
productivity of the company.
SWOT analysis
Strength Weakness
 The brand image of the company is  Weak concentration in the UK.

good as compare to other supermarket
 Best customer services provided by
Morrisons (Hamadamin and Singh,
2019).
 Financial scandal faced by the
organization.
Opportunities Threats
 International expansion of the business
 Enhancing Market growth
 Rise in inflation.
 Competitors can copy the product or
services
Entrepreneur has the opportunity of deriving the change on the basis of skills and traits
different types of traits and skills are help for growth of the business and develop the personality.
Leadership is one of the essential characteristics that are help for leading the team. By this
entrepreneur are launching new approach that are help for guiding the team. It has help for
encouraging for strategic thinking, action and innovation. Vision of the entrepreneur should be
clear in order to achieve make good impression to the customer there are help for making the
clear objective for the organisation. Motivation is the another trait that are help employees of the
particular organisation in order to increasing the quality of performance (Vodă and Florea,
2019). For example, there are different ways that can be help employees in order to motivate
them by appraisal, rewards them and provide them vacations so that they can belief on them self
in order to accomplish the goal of the organisation.
Innovation theory is important theory in the entrepreneurship because there are large
number of investment requires for the expansion of theory and this theory help the entrepreneur
in order to uses the business expansion there are different types techniques are used by the
organisation in order to expansion. It helps to earn large number of profit when customer are like
the innovation that are implemented by the company. For example, Mark and Spencers are-
started with clothing brand but at the period of time it has innovate new techniques which are
help to increases the product line and offer all the category of product which are related to food,
accessories etc (Kerrin, Mamabolo and Kele, 2017). By this there are help for increasing the
customer base and help to increasing the productivity of the business. That is why entrepreneur
have to take the decision regarding this.

There are some skills which are important to have such as creative thinking, this skill is
related to the situation where entrepreneur can use the ability of coming up with the new solution
of the problem. There are different techniques which are need to follows for this and it helps to
solve the problem. For example, when the employee come up with the problem regarding new
project at that time the entrepreneur should listen to them and solve the problem by provide them
proper training (Gwadabe and Amirah, 2017). When the employee get proper training regarding
this, they can improve there work also there are clear all the doubts and improve the skills.
Communication skills is most important for the entrepreneur in order to create positive
environment tin the organisation. This skills has some factors which are important to leading
success success such as active listening it important when the employees come up with
problems at that time paying the close attention tos the person who are speaking towards them.
For the entrepreneur this is important to be confident about what they are plan for next five
years. The pitch of the person is important to low so that employees are actively listen. The
written communication are help to navigate the employees in order to send them mails and
notices so that the communication should be formal an able to understand by the entrepreneur.
The productivity skills are help to navigate entrepreneur in order to maintains the reputation of
the business because there are important to produce sufficient goods according to the demand of
the product. So that consumer can able to have the goods at the right time (Wach and
Głodowska, 2021).
For becoming the successful entrepreneur it is important to have some essential skills and
traits that are lead to give success while launching the business in UK. The economy of the UK
are help the entrepreneur while they are start-up the business. Some of the traits and skills which
are important for the entrepreneur are to become an expert. Expert refers to the person who are
multitalented and ready to learn skills so that it can help in the business organisation. It helps for
developing the reputation of the company by increase network with people, writing articles and
giving talks. When the person is multi-talented they can understand the situation and work on it
so that the time management skills help in it for learning new things (Barbara and Vella, 2017).
Another trait is related to the risk taking, this is help for expanding the business and able
to being risk taker is positive for the organisation in order to plan new for the business. For
example, Flipkart has take the risk by selling the product in sale or at discount so that there are
big risk in it that to sold the product at low price. After the sale ended it has been analysed that

the risk works positive for it and help for increasing the profit of the years. The risk can be work
positive as well as negative because in the business there are large number of investment needed
so that it is important to make the goodwill of the company like that, which can be help for
further years. Relationship building is helps to improve the personality of the person by
building good relation in order to communicate with the people. By facilitating the relationship
employees get motivated while talking to them an it helps to create the positive environment
(Dunn, Marzano and Gill, 2018).
This positive environment help the entrepreneur in order to have success, there are new
opportunities are coming with facilitating the relationship. Creativity is help when the business
is launching because when the person is creative he can use the new ideas in the business this
creativity is help for understanding the factors which are affected the business. Some of the
business skills are important to have in the entrepreneur such as digital marketing, SEO
marketing etc. This skill is helps for understanding the level of the organisation and how it can
be increases the reach of the website. For example, when the person launching the business
related to restaurant it should included the food in the menu which are belongs to healthy food
because after the pandemic people are more aware about their and safety (KOEHLER and
Atkinson, 2021). The interior of the restaurant should be creative so that it can attract the
consumer and then customer will click the picture of that place ans share it to social media so
that it can help for increasing the reach of the business.
CONCLUSION
It has been concluded that there are many factors which affect the macro environment of
the UK, identified with the help of PEST analysis that it can be impacted by Covid-19. There are
change in tariff rates, tax rates are affect the environment that were decreasing the productivity
of the business. Also, it has been analysed that there are some traits and skills which are help the
entrepreneur in order to leading the business successful. Moreover, entrepreneur have the skill
related to communication, risk taking, time management etc. which are important for the
entrepreneur. Further, discussed the traits and skills which are help for launching the business
with the help of relevant example.

REFERENCES
Books and journals
Aldrich, H., 2017. Learning together: National differences in entrepreneurship research. The
Blackwell handbook of entrepreneurship. pp.5-25.
Ács, Z.J. and Lloyd, A., 2017. The global entrepreneurship index 2018. Washington, DC: The
Global Entrepreneurship and Development Institute. pp.72-88.
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business as usual? An introduction and review of the literature. Entrepreneurship &
Regional Development. 31(5-6). pp.400-412.
Liguori, E. and Winkler, C., 2020. From offline to online: Challenges and opportunities for
entrepreneurship education following the COVID-19 pandemic.
Ward, A., Hernández-Sánchez, B.R. and Sánchez-García, J.C., 2019. Entrepreneurial potential
and gender effects: the role of personality traits in university students’ entrepreneurial
intentions. Frontiers in Psychology. 10. p.2700.
Bazkiaei, H.A. and Kasim, R.S.R., 2020. Do entrepreneurial education and big-five personality
traits predict entrepreneurial intention among universities students?. Cogent business &
management. 7(1). p.1801217.
Vodă, A.I. and Florea, N., 2019. Impact of personality traits and entrepreneurship education on
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Kerrin, M., Mamabolo, M.A. and Kele, T., 2017. Entrepreneurship management skills
requirements in an emerging economy: A South African outlook. The Southern African
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Gwadabe, U.M. and Amirah, N.A., 2017. Entrepreneurial competencies: SMES performance
factor in the challenging Nigerian economy. Academic Journal of Economic
Studies. 3(4). pp.55-61.

Wach, K. and Głodowska, A., 2021. How do demographics and basic traits of an entrepreneur
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Barbara, C. and Vella, A., 2017. The european insurance industry: A PEST
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Dunn, M., Marzano, M. and Gill, R.M., 2018. Public attitudes towards “pest” management:
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KOEHLER, A.K. and Atkinson, H.J., 2021. Improving a pest management tool for scenario
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