PEST Analysis of UK Macro Environment and Traits and Skills of an Entrepreneur

This essay discusses the PEST analysis of UK macro environment and identifies the skills and traits required for an entrepreneur to be successful. It covers political stability, economic factors, social factors, and technological factors. It also discusses the importance of commitment, discipline, cultural fit, mindset, and influence in entrepreneurship. The skills required for an entrepreneur include problem-solving, risk-taking, creative thinking, and business management skills.

Essay

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Conclusion .....................................................................................................................................5
REFERENCES................................................................................................................................6

INTRODUCTION
Entrepreneurship is defined as the creation or extraction of any kind of value. It is an act
of initiating and running the business in order to become creative. In context with being an
entrepreneur, it is described as a person who starts a new business, face risks associated with it
and enjoy all the rewards (Gieure, and et. al., 2020) . There are several concepts in relation with
the aspect of entrepreneurship and these are skills, interest, financial investment, risks and many
more. The below essay involves pest analysis on UK macro environment and identification of all
skills and traits associated with it.
MAIN BODY
PEST analysis of UK macro environment: -
Pest analysis is described as a management method through which an organisation assess
different external factors that create an influence on complete operations in order to deal with all
competitors available in the market. In context with UK macro environment, it is defined below:-
United Kingdom is one of the most strong countries all over the world. In relation with
all political factors, the main strength of their macro environment is political stability. Though it
faced the issue of Brexit due to which many uncertainties got occurred. The issue of Brexit was
involved with both positive factors also and negative too. There were many analysts who
assessed that its effect is creating many obstacles but at the same point of time, it is creating new
business opportunities also. The government of UK has always been stable through which the
corruption level was low and all government policies were efficient enough. So, in context with
their political stability and their effective performance, their country ranking is at the top
position.
In context with economic factors, United Kingdom is the 6th largest economy in the world
in context with their gross domestic product. While assessing their industry in the year 2020 and
2021, there were many businesses which got destroyed and the reason behind that was the global
lock downs (Malinao, and et. al., 2021) . The main exports of UK was cars, gold, crude
petroleum and it attracts maximum number of tourists. Besides this, there are huge number of
students who comes to the country and contribute in a major way to the economy. Besides this,
the main reason of success for their economy was diversity. As their marketplace provides equal
opportunities for all the businesses to achieve growth. In relation with the concept of foreign
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direct investment, as the society of United Kingdom has a diverse culture, they provide all
individuals more space to live (Sahputra, and et. al., 2021) . Through this, their economy
attracted many other countries also. There were many other business tycoons also who has
invested in several industries of the country.
Social factors includes the behaviour, culture and attitude of the individual which has
direct impact on the functioning and profitability of the business. With changing customers
preferences it becomes essential for the business environment to continuously satisfy their needs
and wants. The UK is considered to be the huge consumer market, with majority of the
population is getting older creates direct impact on the labour market in UK, there is large
number of opportunity for the business top cater the needs of the older population. Also the
dependency ration is also increasing in the UK. There is effectively high standard of living in
the country which leads the business organisation to satisfy the needs and wants of the target
customers accordingly (Anjum, and et. al., 2019). Not offering the quality goods and services as
per the needs of the customers will lead to creating dissatisfaction among them.
Technological factors includes the factors such as any kind of technology advancement or
any changes in the technology which will directly influence the profitability and brand image of
the company. In case of the UK, the country is considered to be well advance in the technology
and has latest technology, country is using well advance technology which helps them to gain
competitive advantage around the globe effectively. Quality skills in the innovation and
technology will lead country towards further growth and enhancement, they are also considered
to the expert in areas like science and technology also which helps them to innovate new and
create products, but country comes after the US in term of technology enhancement. In case of
the future there is seems to be positive growth for the country. In addition to this the country also
has top leading research and development institutes and they are continuously working towards
further enhancing their growth and development (Dubey, and et. al., 2020). With the well
advance technology country provides great opportunity for the business and entrepreneur.
Traits: -
Every entrepreneur carries certain traits which is beneficial for them to start a business
organisation. Traits are defined as certain characteristics that defines an individual behaviour
across different situations (Kumar, and et. al., 2019) . Every entrepreneur must carry those traits
so that in future their journey of carrying out the business becomes efficient. One of the best trait
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is commitment. It is essential that entrepreneurs are committed enough so that each task can be
fulfilled in a flexible way. It is always expected from an entrepreneur that before starting any
kind of business organisation, the trait of commitment is helpful for them.
Another trait which is helpful for entrepreneur is the level of discipline. All entrepreneurs
are expected that they should work independently and set up all their goals and objectives by
their own (Salehi Kakhki, and et. al., 2019). In context with starting a new business, the element
of discipline is the most important thing. So, to navigate throughout the journey, proper
discipline should be there so that main focus should be put on achieving those goals.
Entrepreneur must be culturally fit also as it would lead to their performance and
productivity. During the implementation of any business, it is important that entrepreneurs are fit
for it. To successfully run a business, an entrepreneur should be able to perform better and be
committed towards it.
While starting a business, there are many risks and challenges associated with it and it
order to deal with other competitors it is important that the entrepreneur has a correct mindset.
The reason behind this is that, on the basis of their mindset only, they would be able to assess
those challenges. Their focus should must be on the specific goal only.
The ability is to influence individual to motivate and provide better understanding for the
objective related task where others can contribute better effectiveness and success in the
organisation (Dell’Olio, 2017). As the similar trait where individual entrepreneur are very good
leader to influence his employees for their objective or goals they can achieve by delivering
productive performance. To quoting motivation thought provide to his employees as they can
reduce the negativity and prepare for further task.
Through mapping all the challenges and positive factor that driven into their way of
process to being entrepreneur where entrepreneurs have always had a behaviour to accepting the
feedback and also listen to his people for scrutinizing his work by measuring his performances
and provide a genuine feedback which actually makes him get to understand and identify the
negative flaws to improve.
Entrepreneur are having a enthusiastic feeling for becoming successful entrepreneur or
some thing else as in career a individual person like to research that field where he wants make
his career such as all pros and cons and benefits. As Entrepreneur have always participate and
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conducts his own interview channels to get the information related with digital media
communication.
Skills
A skill is defined as the ability of characteristic of a particular individual which helps him
to achieve desired goals and objectives and also which leads him to perform better in order to
achieve target results. A skills is a continuous learning process which enables an individual to
enhance their overall performance. For an entrepreneur skills plays an essential role behind his
success and growth also allowing him to be innovative, enhancing their business growth and be
competitive in the marketplace. Enhancement in the skills helps the entrepreneur to analyse the
needs and accordingly innovate and create new ideas in the market to fulfil those needs
effectively. Some of the skills of the entrepreneur which helps in continuous growth and success
are highlighted below:
Problem solving skills: One of the main skills required by an entrepreneur is the problem
solving skills, this allows the entrepreneur to effectively analyse the situation and solve the
problem effectively, being an entrepreneur he has to face various challenging and unexpected
situation which will directly influence his performance so in order to effectively deal with the
situation the entrepreneur needs to have the problem solving skills in order to deal with the
situation (Bauman, and et. al., 2019). For example in case of the Faiza J, with the current
pandemic the entrepreneur has to deal with number of problems, her problem solving skill
helped her to effectively deal with the problem and regain their competitive advantage in the
marketplace.
Risk taking skills: The another essentials skill required by the entrepreneur is the risk
taking skills, this skill allows the entrepreneur to take risk in order to be successful in the
marketplace and bring innovative and creative ideas into the marketplace. An entrepreneur is
always considered to be the risk taker, in order to achieve desired goals and objectives. Taking
risk helps the entrepreneur to be effectively bring new and innovative products in the
marketplace and continue to grow and develop themselves.
Creative thinking skills: Another skill required by the entrepreneur is the creative
thinking skills, this skill allow the entrepreneur to bring new and innovative ideas into the market
which will lead to enhancement and growth of the economy. Creative thinking allows the
individual to think out of the box and bring something new and innovative in the marketplace.
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For example in case of Faiza J one of the successful entrepreneur, her creative thinking skills
helped her to start her own enterprise and become successful (Bellò, and et. al., 2018) .
Business management skills: The last skill required by the entrepreneur is the effective
management skills this skills allows the entrepreneur to manage and handle their business
effectively and smoothly. In order to continue to grow and become successful it is very essential
to properly manage and handle their business implementing necessary strategy and taking the
right decisions also. This skill helps the entrepreneur to effectively manage their business and
become successful (Manesh, and et. al., 2019).
Conclusion
From the above discussion it has been analysed that proper scanning of the environment
helps the business entities and entrepreneur to enhance their performance in the competitive
environment effectively. Proper analysis helps the entrepreneur to utilise various opportunities
present in the environment and convert them in the potential business entity also, additionally the
various creation and innovation of the entrepreneur helps in overall growth and development of
the economy. This report helps in analysing the macro factors of the UK market using the PEST
analysis which helps in analyse the various opportunities and threats present in the environment.
In addition to this various traits such as commitments, disciples and so on and skills like problem
solving, risk taking, creative thinking of an entrepreneur are also analysed which helps him to
achieve desired goals and objectives.
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REFERENCES
Books and Journals
Anjum, and et. al., 2019. Antecedents of entrepreneurial intentions: A study of business students
from universities of Pakistan. International Journal of Business and Psychology, 1(2), pp.72-88.
Bauman, and et. al., 2019. Enhancing entrepreneurial education: Developing competencies for
success. The International Journal of Management Education, p.100293.
Bellò, and et. al., 2018. The power of peers: A new look at the impact of creativity, social
context and self-efficacy on entrepreneurial intentions. International Journal of
Entrepreneurial Behavior & Research.
Dell’Olio, 2017. The development of social farming in Italy: A qualitative inquiry across four
regions. Journal of Rural Studies, 56, pp.65-75.
Dubey, and et. al., 2020. Operationalisation of soft skill attributes and determining the existing
gap in novice ICT professionals. International Journal of Information Management, 50,
pp.375-386.
Gieure, and et. al., 2020. The entrepreneurial process: The link between intentions and
behavior. Journal of Business Research, 112, pp.541-548.
Kumar, and et. al., 2019. Intelligent modeling and detailed analysis of drying, hydration, thermal,
and spectral characteristics for convective drying of chicken breast slices. Journal of
Food Process Engineering, 42(5), p.e13087.
Malinao, and et. al., 2021. Are people in Ifugao Philippines Entrepreneurship? Shedding Light
on Entrepreneurial Characteristics, Motivations, Challenges, and Intentions among
Ifugao. International Journal of Entrepreneurship, Business and Creative
Economy, 1(2), pp.45-53.
Manesh, and et. al., 2019. International ecopreneurs: The case of eco-entrepreneurial new
ventures in the renewable energy industry. Journal of International
Entrepreneurship, 17(1), pp.103-126.
Sahputra, and et. al., 2021. The impact of personality traits on entrepreneurial intentions of the
Indonesian wound care clinicians. International Journal of Research in Business and
Social Science, 10(1), pp.60-68.
Salehi Kakhki, and et. al., 2019. Identification and prioritization of factors affecting the creation
of rural entrepreneurship opportunities in Iran. Journal of Research and Rural
Planning, 8(4), pp.69-90.
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