Entrepreneurial Skills & PEST Analysis: Launching a Business in the UK

This report provides an analysis of the entrepreneurial skills and traits necessary for launching a successful business in the UK, considering the impact of the current business environment. It includes a PEST analysis of the UK, examining the political, economic, social, and technological factors that affect businesses. The report highlights the importance of risk tolerance, long-term focus, leadership, and decisiveness as key skills for entrepreneurs to navigate the UK market successfully, particularly in light of events like Brexit and the COVID-19 pandemic. The analysis emphasizes the need for entrepreneurs to adapt to changing government policies, economic fluctuations, social trends, and technological advancements to ensure the stability and growth of their ventures. This student-contributed report is available on Desklib, a platform offering a variety of study resources for students.

BA Business Management
assessment 1

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Pest analysis ................................................................................................................................3
Analysing the skills and traits of the entrepreneurs that leads to launch the successful business
in the UK......................................................................................................................................5
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
The business base is rapidly changing due to the rise of technology, a reality that has
been restated by the effects of COVID-19. Entrepreneurs have been thrown into more
competitive environments against large industry with huge financial and intellectual resources.
This report includes the information about entrepreneurs and traits which could help them in
order to gain competitive advantage in market of the country which helps them in order to make
stability and navigate their way through. Pest analysis of UK also help the entrepreneurs. In just
few times COVID-19 crisis has brought a lot of changes in the companies and start-ups as well.
MAIN BODY
Pest analysis
The UK a country situated on the Northwest of Europe. Below is a description of Pest
analysis of country by which entrepreneurs get help to establish their business in the country
(Odey,2021).
Political: Political factor of the country defines the political stability of government and safety
measure in the country where entrepreneurs try to set their business. The country has the
powerful administrative system. Currently Boris Johnson and queen Elizabeth handle the
administrative system of the organization. Brexit which means exit of British from the European
union. This also affect the entrepreneurs of the country and for the start-ups. Because many
people have their own prospective regarding the Brexit and employment opportunity affect
because of this. COVID-19 affect the country very much and many organizations as well. It is
very clear that every business organization get effected with the changing policy of the
government. Political factor may include tax and tariff policy, trade restriction and most
importantly stability of the government which affect the entrepreneurs of the country.
Government made changes in casual zero hour labour contract impacting businesses and its
structure (KOEHLER, and et.al 2021).
Economic: Economic factor determine the country GDP and diverse economy by which
entrepreneurs get help to establish their business. This describes the stability of the economy, in
every business organization have to keep eye on the movement of the economy and impact of its
factor. Economic factor of the country include, interest rate, exchange rate, inflation rate and
employment and unemployment rate. Recent exchange rate of economy of UK impacted each

and every entrepreneurship, after COVID-19 impact government took certain step to bring up
fallen exchange rate, with the help of multinational companies many countries get a benefit
because of their exchanges across the globe. Whatever the supply of goods outside the euro has
been made then after the supply will get back to the company in exchange is in euro (Silinevicha,
and Kalinina, 2017). Exchange rate of the currency because of the organization has a great
impact on the economy of the country where the organization is placed. The COVID -19
pandemic has harmed the organization business because they deal with the essential products
which needed to the people in their daily lives. Though, the Supply chain were severely
disrupted as a result of the flu spread, Consumer purchase behaviour has shifted dramatically. As
a result of this disease, the globe faced an economic downturn. Aside from that, the currency
rates are often a concern to organization. Brexit was yet another occurrence that harmed the
company's brand sales. It's because, despite the fact that currency was predicted to decline, they
hiked import taxes, making it prohibitively expensive for consumer to buy the product. Import
rules, levies, depreciation, and exchange rates in several nations all contribute to brand
uncertainty. Organization must be extra careful with their generic products in each country in
which they operate in order to maintain a competitive advantage.
Social: Social factor determine the population and health care system of the country which help
the entrepreneur to determine their income level. Basically, this factor determines the customer
and their lifestyle, every business organization greatly get impacted by the social factor. These
social factor include, taste and preference of the customer, liking and disliking, cultural belief
and value and income and education level. This has brought major impact on the brand image of
the companies in the market. Company should know about the culture and the society where they
go to set their business up because it totally depends on the culture and the society preferences.
Nowadays the lifestyle of the people changes rapidly that's why entrepreneur need to look after
the culture and the society they have. Social factor totally depend on the culture, education of the
society which enables the people preference and their choice of product ans sentiment towards
the organization company should bring the awareness among the people with which they can
attach with the people emotions by promoting their products (Vlados, and Chatzinikolaou,
2019). The companies have been impacted by the pandemic, they recognize how it is to be
mindful of the people and nature around them. While modern consumers are more
knowledgeable and educated, and therefore, much more cognizant of the businesses they

support, brands have had to prioritize sustainability in their operations activities from throughout
ages. Having cost effective is a double dagger because several individual use it to make inferior
quality products.
Technology: Country has the world largest research and technology institutes available.
Thereafter, the technology consist invention and development by which country attract the new
entrepreneurs. Technological factor means the advancement and betterment in technological of
the industry as a whole. Nowadays Industries being using latest and fastest technology in the
process, every entrepreneur have to adopted advance technology in the process. Entrepreneur
should use latest and advance technology in their business operation, this provides high quality
browsing line and easy assess website to the customer to improve their experience. Increase in
technology and e-buying give the organization advantage to take their products one step forward
in order to get the attention of the consumer and people. With the help of internet customer get
the transparency of the product they want to buy. Technology is also beneficial for the
organization to connect people with across the globe and communicate with them it gets the
organization chance to expand their business more in different region (Chege and Wang, 2020).
Analysing the skills and traits of the entrepreneurs that leads to launch the successful business in
the UK
Entrepreneur has ben considered as that person that takes the accountability and responsibilities
of the business. They are the ones that focuses on increasing the profit for the business.
Therefore, there are certain traits and skills that are required in order to become entrepreneur and
run the business. In order to understand this with clearance here are the description of the traits
and skills on the basis of the above PEST analysation of UK. These skills of the entrepreneurs
are needed in order to maintain the fluctuation in the macro environment of the UK and ensure
the smooth running of the business.
Risk tolerance- This is one of the major trait and skill that are required in the entrepreneur. This
refers to the ability of handling the risk. After the COVID, the situation in UK became worst The
operations of the business got stopped. Many businesses get shut down. Therefore, this trait
plays an important role as it shows the capability of the entrepreneur that they can handle and
manage the risk (Rosado-Cubero and et.al., 2021). The political environment of UK has shown
that in UK, the government makes keen focus over the trade activities. And timely, the
government takes the decisions in relation of the business. There is a high rate of uncertainty in

the business. Any business that does not follow the rules and regulations of the government has
to face the obligations.
Therefore, it is important for the entrepreneur to make a keen observation over the macro
environment and analyse the risk. Also, it is important to take corrective measures. And this can
only be done when the entrepreneur is willing to take risk. It increases their capacity of tolerating
the risk. Also, it helps in taking measures. For example: Laurence Graff is one of the biggest
entrepreneur in UK. It has been found from various studies that, Laurence Graff has the
capability of facing the risk. All the policies of government are effectively followed by his
business (Moudrý and Thaichon, 2020). As a result, his business of diamond is touching the
higher rate of success. Thus, it is important to have the ability to face the risk in the entrepreneur
in order to start the new business as it ensures the success of the business in UK.
Long term focus- The work of entrepreneur is just not limited to opening up the new business. It
is a broader concept that involves the innovations till the life of business. The focus has been
made for the long period. As the economic factor of the UK has shown that, it determines the
structure in which the business has to be established. The long term focus skill and trait of the
entrepreneurs ensures the long term success of the business and also helps in performing the
economical aspects in the country. Such as, providing employment to the public. The disaster
like COVID has created the situation of unemployment in the country (Karadal and et.al., 2021).
Therefore, in Order to start the new business in the UK it is important to have this quality in the
entrepreneur. As it ensures the long-term success of the business. And it further provides the
assurance of creating more job opportunities for the people in the UK. For example: It has been
found from various studies that from the start up of Microsoft company, Bill gates has always
focused on making innovations and made plans for the long-term. As a result, the company is
highly successful and contributing in the GDP of the countries where the branch of the business
is established. Also, assuring the large number of employment.
Leadership- This refers to the ability of guiding the followers. An entrepreneur is concerned
with large number of followers. Therefore, it is important to have the quality of the leadership as
it ensures the effective guiding to the people. Along with this, it also established the effective
understanding among the entrepreneur and followers. The social factor of the PEST analysation
of UK has determined that the taste of the customer highly gets affected. Therefore, the
entrepreneur must keep a keen focus over this (Mensah, Asamoah and Jafari-Sadeghi, 2021).

But, if the entrepreneur itself has the quality of being good leader then automatically large
number of population start following the entrepreneur and his business as well. For example:
Elon Musk is one of the biggest entrepreneur in the World. There are large number of followers
that are following him and put complete trust in the TESLA. This proves that, the leadership
quality of entrepreneur helps in gathering the attention of consumer and takes the taste of the
customers towards the business. Thus, it is important to have the quality of the leadership in the
entrepreneurs as it ensures the favour of the customers towards the organization. And also
enables to have the effective interaction with the customers.
Decisiveness- In order to make the business success and for becoming the successful
entrepreneur, it is important to have the trait and skill of making and applying hard decision. On
the basis of the PEST Analysation of the UK, it has been found that the country has the vast
number of technologies in order to make the business more productive. But, there is a risk in the
technology as well. It may lead to increase the cost of production, it may further lead to the
failure of technology for the business. Therefore, the skill of decisiveness enables the
entrepreneur to take hard decision in relation of adopting the technology for the business. And
also, if the decision got failed, then the entrepreneur must have the quality of accepting the
failure as well (Sahedan, Jaafar and Nathan, 2020). It has been further said that the successful
business and entrepreneur has comes from facing the failure. For example: Steve jobs has been
remembered for his legacy that has been created by him. He faced the failure before becoming
the successful. And this leads to earn of experience by him. And he became the successful
entrepreneur and added glory in the success of the business. Thus, the quality of making hard
decision is needed in the entrepreneur for launching the business the UK.

CONCLUSION
From the above report it has been concluded that, it is important to understand the macro
environment in order to assure the success of the business. An efficient understanding of the
macro environment guides the entrepreneur in terms of having the mandatory skills that is
required in order to make the business successful. Along with this, the report has also described
the mandatory traits and skills that are needed in the entrepreneur for launching the new business
in the UK. The traits and skills of the entrepreneur determines the success rate of the businesses.

REFERENCES
Books and Journals
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