Pest Analysis of Macro Factors of UK for Entrepreneurs

This report discusses the Pest analysis of the macro factors of the UK which includes the political, economical, social as well as the technological factors which are very important for the entrepreneurs for setting up the business in the new market that is to the different country.

ENTERPRENEURSHIP

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
PEST analysis of macro factors of UK-.......................................................................................3
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Entrepreneurship is usually the process of setting up the business is known as the
entrepreneurship (Baker and Welter, 2018). The entrepreneurs are the individual who have the
ability and skills to create the new business and can bear the risk and enjoy the profits from this.
The entrepreneurs haver the skill of using innovative ideas, creating the source of the new ideas
as well as the Good's ans services. The entrepreneurs play the vital role in the growth of the
economy by using their skills traits which are necessary for the starting up the business. The
entrepreneurs have the features such as they have the ability to take the risk, innovation and
effective leadership quality. These funds are ensured by the entrepreneurs such as taking loans
from the banks and many more. There are four types of the entrepreneurship such as small
business entrepreneurship which includes the businesses like hairdresser, grocery store etc.,
Scalable start-up businesses which starts by the vision that he world may change, large company
entrepreneurship are the businesses which comes up with the innovative ideas as well as the
social entrepreneurship which are the business focusing on producing the products and services
for meting the social needs and wants of the consumers. This report will discuss the Pest analysis
of the macro factors of the UK which includes the political, economical, social as well as the
technological factors which are very important for the entrepreneurs for setting up the business in
the new market that is to the different country.
MAIN BODY
PEST analysis of macro factors of UK-
Political Factors- The political factors are the factors which has the power of influencing the
working of the business. These factors can be such as tax policy, environmental regulations,
trade restrictions and many more. The government interference in the industry has much impact
on the industry as well as on the political stability (McNair, 2017). The United Kingdom is the
constitutional monarchy which works under the parliamentary system. UK is considered as the
fair and stable country and provides many opportunities to the businesses running in this country.
These political factors have both negative and the positive influence on the businesses such as
UK is th fair country so by this the public has the large influence on the internal workings, it has
much proactive government and has political stability. These are the positive impact on the
businesses of the country as this will prevent the company from facing the challenges and issues

in the new market. The negative impacts can be such as corruption is there in the country and the
most important is the Brexit that is whether to stay in the EU or not these not have the major
impact on the business working and performance of the companies. The entrepreneurs can face
this challenges and factors effectively by using their professional skills and traits such as taking
effective decisions, having the self-confidence and the autonomy will help them to stay ahead in
the competitive market and will help them to increase their productivity level of the company as
well as avoiding the impact of these factors on the working of the business.
The political stability of the country is currently being affected by the Brexit. The factors which
has major impact are the tariffs, merit goods and services, health system, environmental Law,
labour laws, industry safety legislations and many more. The UK has good relations with the
other countries as well and it is the permanent member of the UN (Masood and Sonntag, 2020).
The Brexit is the most the biggest political issue's in the country and this largely affects the
business. These political factors an affect the businesses by adding he risks factor and leads to
the major loss in the company as these factors has the power of changing the results. The
changes in the government policy has makes the political factors of the country. The
entrepreneurs can use the skill which will help them in effectively changes of the company to
adopt the business environment. The unstable political environment has the impact on the
businesses of the UK, so they must ensure about the changes making in the internal business as
well by using their ability of taking the effective decisions for making the strategies which will
help the company to work according to the business environment.
Economic Factors- These are the factors has the impact on the business of the country as well as
their economy of the overall country. The economic factors of the country are largely connected
with the supply and demand of the money of the country. These factors can be such as exchange
rate, gross domestic product, disposable income, interest rates and many more. The economy of
the UK is growing at very strong pace and has high positive in the terms of the economy relating
to the other countries (Malecki, 2018). This country has the high GDP, diversified economy and
there are also many issues along with these. The economic factors also have the positive as well
as the negative impact on the businesses. The positive impact can be such as UK ranks as the
fifth highest in the terms of the GDP and has the second position in the Europe, the large
populated country which helps the small businesses to earn the profits, diversified economy
because it has both public and the private sectors businesses, the country has the free market and

the foreign direct investment is increasing. The negative of these factors has the negative impact
on the working of the businesses as well as the performance of the company are as the country
has slow recovery from the economic recession which was held in the year 2008 and 2009, lot of
money has been speeded by the country for providing the free public services aid facilities to the
migrant as well (Bienhaus and Haddud, 2018).
The entrepreneurs of the businesses of the UK must ensure about effectively taking care of the
company's position in the market which can be done by the using the leaderships skills in the
companies which will help them in managing the proper resources in the company as well as by
using the cognitive thinking skills which will help them to face the issues related to the economic
factors of the country. It is very important for the entrepreneurs to use the skills and traits in the
organization which will provide the competitive advantage to the overall organization because
they will be responsible when the company will incur any loss.
Social Factors- The society of the UK country is rapidly changing as this leads to changing in
the consumer trends. The tastes and preferences of the customers is also changing which is
becoming very difficult for the companies to meet the expectations of the customers. The social
factors which can impact the working of the business in UK are such as lifestyles, buying habits,
health consciousness, social classes, culture and beliefs and many more. The social factors of the
Pestle analysis focuses on the society needs and wants such as the colleagues, friends,
neighbours and other societal factors. These societal factors have the major impact on the
attitudes, opinions as well as the interests of the people and thus, it directly impacts the sales of
the products and services of the company.
These factors also have some positive as well as the negative impact on the businesses of the
country. The positive impacts can be such as there are many free public services, there is high
standard of living of the people as well as the more and cheap workforce in the country. The
companies operating in the UK country will have the positive impacts of the social factors as this
will help them in avoiding the issues in the companies (Aldrich and Wiedenmayer, 2019.). The
negative impact of these factors are not good for the businesses as this impacts the whole
working of the organization such as the dependency ratio is increasing, some social issue
regarding the ethnic groups as well as the increasing education costs. These have the major
impact on the performance of the businesses and if these are not ensured by the company then
they may affect largely to the businesses. The entrepreneurs must use the skills such as the

effective HR management policies, proper market research using the marketing tools and
techniques will help them to understand the needs and wants of the consumers, and they can be
meet effectively. The entrepreneurs are responsible for taking the actions on these issues and
challenges so that the business does not get affected by these factors.
Technological factors- These are the factors which are related to the existence, availability as
well as the development of the technology according to the business environment. This
technology can be varied from the engine efficiency as well as to the computational power of the
company. The technology has the huge impact on the working of the business and how
effectively this is done using the advanced technology. The technology can be such as the
existence of the 3D technology, calculation speed of the computer, the ability of the computers
tin the creation of the random numbers, internet connectivity, wireless charging, automation and
many more (Lounsbury and et.al., 2019.). Adopting these advanced technology in the business is
very important for the company as it helps them in effectively running the business s well as
staying ahead in the highly competitive market. This can have the major impact on the business
as if they are not adopting this technology then they have the chances of the not surviving in the
market, and they can lack behind. The entrepreneurs must use the innovative skills which will
help them to adopt these technological changes and they can be used by the companies for the
better results of the company.
UK does not have the good access towards the technology as it has been stated by the More
Economically Developed Country. These technological factors also have the negative as well as
the positive impacts on the business. The positive impacts can be such as having the quality
innovation skills, expertise in the field of the science and IT, laws regarding the intellectual
property and the very high competition in growing the business in the market. These ensuring the
company can enjoy the competitive edge as by giving tough competition to the other companies
in the same sector (Pagani and Pardo, 2017). The major negative impact of these on the business
of the UK country is the slow technological development as compared to the other countries. The
future of the UK is very good that gradually they will be easily achieve the speed of adopting the
advanced technology in the country. These are the integral factors of the pest analysis and these
are the factors which have the relation to the present as well as to the development of the
technology in the future. There many organizations which gets impacts by the technology as they

are very important to be considered while the growth of the company because it helps the
company to increase its efficiency.
CONCLUSION
From the above report it can be concluded that the pestle analysis is very important for the
company as it helps them to understand and evaluate the factors which may impact the working
and efficiency of the company. This report has discussed the factors such as the political factors,
economic factors, social factors as well as the environmental factors. The political factors which
has the major impact on the business working which can be determined by the analysing the
government interference in the industry. The economic factors also impacts the business if there
is unstable economy of the country. This report has also discussed the social factors which are
impacted by the culture of the consumers and the company has to meet the expectations of the
consumers for surviving in the highly competitive market as well as the technological factors
which will have the impact on the company if they are not adopting the advanced technology.

REFERENCES
Books and journals
Aldrich, H.E. and Wiedenmayer, G., 2019. From traits to rates: An ecological perspective on
organizational foundings. In Seminal Ideas for the Next Twenty-Five Years of
Advances. Emerald Publishing Limited.
Baker, T. and Welter, F., 2018. Contextual entrepreneurship: An interdisciplinary perspective.
Now.
Bienhaus, F. and Haddud, A., 2018. Procurement 4.0: factors influencing the digitisation of
procurement and supply chains. Business Process Management Journal.
Lounsbury, M., and et.al., 2019. Culture, innovation and entrepreneurship. Innovation, 21(1),
pp.1-12.
Malecki, E.J., 2018. Entrepreneurs, networks, and economic development: A review of recent
research. Reflections and extensions on key papers of the first twenty-five years of
advances.
Masood, T. and Sonntag, P., 2020. Industry 4.0: Adoption challenges and benefits for SMEs.
Computers in Industry, 121, p.103261.
McNair, B., 2017. An introduction to political communication. Routledge.
Pagani, M. and Pardo, C., 2017. The impact of digital technology on relationships in a business
network. Industrial Marketing Management, 67, pp.185-192.
1