LCBB5001 - Entrepreneurship: Skills, Traits & UK PEST Analysis

This report provides an analysis of the macro environment in the UK using the PEST model, focusing on political, economic, social, and technological factors impacting businesses. It also identifies and discusses essential skills and traits required for entrepreneurs to succeed in the current competitive ...Read More

Entrepreneurship
LCBB5001 Assessment
1

Table of Contents
Introduction.................................................................................................................................................3
Main Body...................................................................................................................................................3
PEST Analysis.........................................................................................................................................3
Traits / Skills of Entrepreneurs................................................................................................................6
Conclusion...................................................................................................................................................8
References...................................................................................................................................................9

Introduction
In the current era, competition is increasing rapidly hence it has become difficult for the
entrepreneurs to gain success in the market place. In addition, COVID-19 has also been created a
uncertain environment in the business world. Now, it is imperative to invest significant amount
in technological development. Additionally, entrepreneurs are required to face intense
competition with large corporations. For this purpose, they need to have necessary skills and
competencies. In addition, availability of adequate amount of resources is also important to
successfully start and run a business venture. The business environment of UK is highly affected
due to COVID-19 which has a direct impact on the functions of new and existing entities
(Wilson and et. al., 2018). The main aim of the present study is to analyze the macro
environment of UK along with the skills and traits required to present in an entrepreneur to face
the uncertainties of business environment. The study will include PEST analysis of the macro
environment of UK. It will also cover the necessary traits, skills and competencies need to
present in entrepreneurs to thrive in the current competitive market place.
Main Body
PEST Analysis
Macro environment is an economic condition that is present in the overall economy
rather than a particular sector. It includes several elements such as GDP, inflation, technological,
social and more. These elements are present in the outside environment and cannot be controlled
by the business entities. Each and every entity get affected through micro environment hence it is
imperative to prepare suitable strategies in order to ensure long-term sustainability in the
competitive market (Castañeda-Ayarza and Godoi, 2021). Effective analysis of macro
environment makes an organization enable to understand the external conditions so that they can
formulate suitable strategies accordingly.
PEST analysis is a model that is used to understand the impact of macro environment on
business. It includes the study of each and every element which might influence the business
entity profoundly. In PEST analysis, the elements such as political, economical, social and
technological are studied in a detailed manner. However, these elements have a major impact on

business but it is not possible to control these elements. It is imperative for business managers to
keep an eye on change in the external environment and modify the strategies accordingly. In this
context, PEST analysis is mentioned below:
Political Factors: These factors are associated with political environment of a particular
country. Here, the political environment is likely to get change by change in the political parties.
Each party has its own rules and regulations which also affect the functions of business entity.
Additionally, UK is considered as one of the most powerful country across the globe. Here,
Prime minister is the head of government who is elected in every five year (Singh, 2016).
Additionally, the political environment of UK is stable which is considered as the major strength
of the country. However, Brexit has been created uncertainties in the environment. It also created
political issues and debates in the country. Here, it will put a major impact on the operations of
the business entities. As a result of Brexit the trade relations of UK and EU have been disrupted
which has a direct impact on business transactions between both the countries. In addition, the
respective event has been created chaos within the country and also gave a rise to the criminal
activities as well. However, UK maintains positive relations with powerful countries such as
United States of America and more. It is a significant member of UN that put a positive influence
on economy of the country. Therefore, the political environment is stable but it is influenced by
the impact of some uncertain events which also affect the progress of business entities. Risk-
Taking skills: An entrepreneur starts the new venture to earn potential profit. But, there is no
such guarantee of profit. It might possible that the business incur losses during the initial days. In
order to survive in the current uncertain political conditions an entrepreneur needs to have
necessary risk taking abilities. These skills will help them to face the uncertain political
conditions efficiently.
Economical Factors: While conducting macro environment analysis, it is imperative to
consider economical conditions of the country. UK is a strong economy and holds the 6th position
in the world. The GDP of UK was 2707.74 billion $ in 2020 that represents 2.40% o9f the
economy of the entire world. In 2016, the GDP was 2662.48 billion $ which increased in 2018
upto 2830. 81billion (Tradingeconomies.com, 2021). However, the country faced deep decline in
the recent GDP due to the pandemic. Here, the nationwide lockdown put a tremendous impact on
the growth rate of the economy of the respective country. It destroyed different industries hence

the government has to provide financial support to the small businesses and the individuals as
well. Financial services sector plays a significant role in the economy of UK. In 2019, the
contribution of financial service sector was 132 billion (House of Commons Library 2021). In
addition the country is a popular choice of foreign investors. Here, several investors and well-
known organizations are likely to invest in different industries of UK. Sports, technology,
grocery and other industries have been drawn significant attention of the global investors that
will help in the growth and enlargement of the economy in an efficient manner. Planning:
Planning is done to minimize the future uncertainties in an efficient manner. In current time, the
business environment is completely uncertain hence an entrepreneur needs to make plans for
future growth and betterment. Due to the dynamic nature of economic conditions, it is required
for an entrepreneur to have the ability to predict the future efficiently. By maintaining effective
planning skills, they can easily survive in the ever-changing economical conditions of the
country.
Social Factors: This element consist different factors such as attitude, personalities,
perception of the individuals. For an organization, it is imperative to consider the needs and
requirements of the customers before offering a particular product or service. In UK, the
consumer market is wide hence there is significant opportunity for the business managers to sales
the products or services. In 2021, the population of country was more than 68 million
(Worldometer 2021). Here, the birth rate is exceeding than the mortality rate that will create
opportunities for the business organizations in terms of enhancing the market demand in an
efficient manner. The education system of the country is improving rapidly due to incorporation
of latest information. Here, modern and recent technologies are used in the education field.
Hence, it is easy for the new business to introduce new technologies and digital methods as
people are skilled enough to adopt new techniques (Mohammad, Hong and Wang, 2018). In
terms per capital income, UK falls under the category of top 20 countries. Here, most of the
people fall under the category of high-income earners. However, the purchasing power of the
people is affected by the COVID-19. Inspiration: An entrepreneur needs to have inspiration to
do something. It is important to keep them motivated towards the goals. Here, inspiration keeps
an entrepreneur motivate in order to put significant efforts to meet with the expectation of
society. Additionally, it helps entrepreneur to stay motivates and inspired so that they can fulfill
the requirements of the customers efficiently.

Technological Factors: This element of macro environment refers to the use of recent
and updated techniques to ensure the future success of business. In current time, technological
advancement is crucial in order to survive in competitive market for longer duration. In UK,
there are several research and development institutes which contribute in making the people
technology oriented. In the economy, there are various opportunities for the entrepreneurs to
undertake technological innovation (Khosla and Gupta, 2017). In the entire world, UK is
considered as one of the most technology oriented countries. Here, London is known as the hub
of financial and technological institutes. Business entities are constantly developing new
technology to help the people in enhancing their living standard. In addition, technology industry
also contributes a major part in the overall economy of the country. Also, COVID-19 has been
enhanced the scope of technological advancements and up gradation in the country. Technical
skills: For an entrepreneur, it is important to have sound technical skills in order to face
competition with large corporations. By maintaining necessary technical skills, entrepreneur can
evolve new techniques and softwars in order to meet with market demand efficiently.
The above-discussion is based on the analysis of business environment of UK. It is found
that the political environment of the country is stable and has tremendous opportunities for new
business ventures. Economic condition of the respective nation is also strong with high GDP and
growth rate. In addition, the social environment of UK is favorable for enhancement of business
due to presence of literate and technology oriented people. In addition, there is strong technical
infrastructure in UK that will also contribute in success of new business ventures efficiently.
Traits / Skills of Entrepreneurs
Entrepreneur is the person who starts business in order to provide unique and creative
products or services to the customers. Here, unique idea as the foundation of entrepreneurship
which helps the entrepreneurs to ensure sustainability of new venture in the competitive
environment. The COVID-19 has been created an uncertain environment for the entrepreneurs
but it also has been increased the opportunities of introducing new products or services based on
technology (Syriopoulos, 2020).
During the Pandemic, a lot of people realized their potential of creating a unique business
model. They realize the efficiency of technology and how significant it is for a business. As a
result, several entrepreneurs started their small ventures with the use of technology during the

pandemic. Here, Natalie James is a suitable example of such entrepreneurs who started a
business of sending a 10 month subscription box service with name called “Tingle”. The brand
offers a systematic selection of skincare, beauty products at the doorstep. She started her own
website with the initial investment of £ 300. The investment was made on the Wix, designing
and packaging of the box. Additionally, Natalie managed to sale nearly £ 400 subscription boxes
during the pandemic time. The another example of such business is “Soul Food”. It is a startup
that was initiated by Leonie Wander during the pandemic. The venture offers takeaway services
during two or three days of a week. Here, Wander uses instrgram to promote the business. She is
getting 20 orders per week and has been made £500 so far (Coronavirus: The women who started
businesses in lockdown, 2021). In this context, the traits and skills of need to present in the
entrepreneurs are mentioned below:
Inspiration: An entrepreneur needs to have inspiration to do something. It is important to
keep them motivated towards the goals. An entrepreneur has to face ample of hardships during
the entrepreneurial journey. But, it is imperative to take all the challenges positively and face the
complexities with positive attitude. This trait significantly helps the entrepreneurs to face the
competition with large corporations (Al Mamun and Ekpe, 2016).
Technical skills: In current time, technology has become a crucial part of business.
During COVID-19, people have realized the significance of technology in business. For an
entrepreneur, it is important to have sound technical skills in order to face competition with large
corporations (Moudrý and Thaichon, 2020). Here, technical skills make the entrepreneur enable
to use the technology for creating unique image of business. Technical skills: For an
entrepreneur, it is important to have sound technical skills in order to face competition with large
corporations
Planning: Planning is done to minimize the future uncertainties in an efficient manner. In
current time, the business environment is completely uncertain hence an entrepreneur needs to
make plans for future growth and betterment. Planning is crucial to minimize the future risks and
ensure long-term sustainability in the competitive market. While planning, an entrepreneur need
to make estimations regarding the resources and other requirements so that the business
operations can be performed consistently.

Risk-Taking: An entrepreneur starts the new venture to earn potential profit. But, there
is no such guarantee of profit. It might possible that the business incur losses during the initial
days. Hence, an entrepreneur needs to have risk-taking ability to put consistent efforts for future
growth and success of venture (Hatthakijphong and Ting, 2019).

Conclusion
Through the above-discussion, it is analyzed that the COVID-19 has been changes the
business environment. Now, the use of technology has been enhanced in business. It is analyzed
that the environment of UK is favorable for business. The country has high political stability,
higher GDP, positive social environment, efficient technical infrastructure that is important for
growth of a business. There is example of suitable entrepreneurs who have started business
during the pandemic using technology. Additionally, there is requirement of different traits and
skills such as planning, technological skills, risk taking ability and more to stay in competition
with large corporations.

References
Books and journals
Al Mamun, A. and Ekpe, I., 2016. Entrepreneurial traits and micro-enterprise performance: a
study among women micro-entrepreneurs in Malaysia. Development in Practice, 26(2),
pp.193-202.
Castañeda-Ayarza, J.A. and Godoi, B.A., 2021. Macro-environmental influence on the
development of Brazilian fuel ethanol between 1975 and 2019. Renewable and
Sustainable Energy Reviews, 137, p.110457.
Hatthakijphong, P. and Ting, H.I., 2019. Prioritizing successful entrepreneurial skills: An
emphasis on the perspectives of entrepreneurs versus aspiring entrepreneurs. Thinking
Skills and Creativity, 34, p.100603.
Khosla, A. and Gupta, P., 2017. Traits of successful entrepreneurs. The Journal of Private
Equity, 20(3), pp.12-15.
Mohammad, A.E.K., Hong, J. and Wang, D., 2018. Design of a force-controlled end-effector
with low-inertia effect for robotic polishing using macro-mini robot approach. Robotics
and Computer-Integrated Manufacturing, 49.
Moudrý, D.V. and Thaichon, P., 2020. Enrichment for retail businesses: How female
entrepreneurs and masculine traits enhance business success. Journal of Retailing and
Consumer Services, 54, p.102068.
Singh, D., 2016. Banking regulation of UK and US financial markets. Routledge.
Syriopoulos, K., 2020. The impact of COVID-19 on entrepreneurship and SMEs. Journal of the
International Academy for Case Studies, 26(2), pp.1-2.

Wilson and et. al., 2018. A role for artificial night-time lighting in long-term changes in
populations of 100 widespread macro-moths in UK and Ireland: a citizen-science
study. Journal of Insect Conservation, 22(2), pp.189-196.
Online
House of Commons Library 2021. Financial services: contribution to the UK economy. [Online].
Available through : https://commonslibrary.parliament.uk/research-briefings/sn06193/.
Tradingeconomies.com, 2021. United Kingdom GDP. [Online] Available through :<
https://tradingeconomics.com/united-kingdom/gdp>
Worldometer (2021). UK Population, [Online] available
through: <https://www.worldometers.info/world-population/uk-population/>
Coronavirus: The women who started businesses in lockdown.[Online] available
through: https://www.bbc.com/news/business-54062717/