Entrepreneurship in UK: PEST Analysis, Skills & Traits for Success

This report provides an analysis of entrepreneurship within the United Kingdom's business environment, using Tesco as a case study. It includes a PEST analysis to evaluate political, economic, social, and technological factors impacting businesses. The report identifies key skills and traits necessary for entrepreneurs to succeed in the UK market, such as IT skills, social connectivity, analytical abilities, decision-making, management, leadership, risk-taking, and a goal-oriented mindset. It also provides examples of successful entrepreneurs like Elon Musk, Ratan Tata, Jeff Bezos, Mark Zuckerberg, Steve Jobs, Bill Gates, and Mukesh Ambani, illustrating how these skills contribute to their achievements. The analysis offers insights into navigating the UK's macro environment and distinguishing oneself in a competitive market.

Entrepreneurship

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK ..............................................................................................................................................3
CONCLUSION ...............................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Entrepreneurship is the process of determining a new opportunity and turning it into an
enterprise considering the risks involved and makes profits through it. The person responsible for
performing the entrepreneurship related tasks is known as entrepreneur (Bacq, Drover and Kim,
2021). The company chosen in this report is Tesco, a leading business in the retail sector which
deals in the groceries items and general merchandise. It was founded in the year 1919. The
following reports consist the scenario of PEST analysis on the United Kingdom's business
related environment and the elements which the entrepreneurs must identify that helps them in
reading the market trends. Certain skills and traits that are needed to successfully launch a
business entity in the UK and that help them in distinguishing them from the rest of the market
are also covered with some famous examples of successful entrepreneurs of the corresponding
market.
TASK
Pest analysis on UK macro environment :
It is an strategic management tool which helps a company to identify various macro
environmental factors which effects the organisation. This helps in analysing the elements that
are needed to be in strategy planning. Following is the elaborated form of this modal identifying
its different points through which the acronym PEST is made on the company Tesco :
Political factor includes the effects that government related policies (such as trade policy,
laws and parliamentary bills) of a market can effect a business. UK is consisted of 4 countries
England, Wales, Scotland and Northern Ireland. It is one of the richest and powerful country of
the world. In this democratic world, today also the queen is considered to have big place in the
constitutional monarchy. The most dominating political parties are Labour, Conservative,
Scottish national party and Liberal democrats, which differently affects the political business
environment. UK withdrawal from Europe, known as Brexit has deeply effected the business
environment of Tesco by increasing the importing cost and making it different for companies to
diversify in other countries due to losing their powers and presence in the continent and opened
doors of opportunities in some other ways and for some particular types of industries. It
maintains good relation with some developed countries in trading of goods and services(Santos,
Neumeyer and Morris, 2019).

In economical factor the various aspects of the economy are included such as inflation,
exchange rates, interest rates, employment rates are included. UK' s economy comes under one
of the largest economy in the world. The diversity of Tesco plays a major role in its economic
growth. It provides products in various types and its consumers are also supportive towards their
new types of commodities which help in increasing the diversity of the country. The economic
growth provides big opportunities to all the businesses like Tesco for their growth and make
presence. Due to the developed and diversed market, the risk decreases and it gets attraction
from the investors from all over the world and thus increasing its foreign direct investment.
Tesco also gets benefited from it because of their higher exchange rate from other countries
(Chernopyatov and et. al., 2018).
Social factor is based on the wants, beliefs and situation of the consumers which a
business have to focus on to avoid any bad outcomes and make fair image in the society. The
increasing of options of sellers in the market has made a larger impact of this element even on
the necessary products offered by Tesco. Certain examples of this component are population,
employment, religious beliefs, cultural changes and literacy rates. Health care system of UK is
vast and contain one of the best facilities in hospitality in the world. Due to the increasing of
educated people, the knowledge and concern regarding this topic is getting better rapidly. Their
are opportunities of building more health facilities and providing easiness in the sector and this
opportunity may be grabbed by Tesco by offering products relating to health so that it can attract
more customers. Population of the country has also been growing vastly in the past years and it is
estimated to be growing continuously.
Technological factor will involves the ecological aspect and as well as environmental
aspects that are accessible relates to the goods and facilities. It also involves the roles and
sections of the businesses that might require to innovate or recreate by having suitable
consideration with the compatibility by their own techniques and tools(Durmuşoğlu, 2018). As it
is also termed as the transferable internationally terms in an effective and efficient term of the
manner. The nation has the world wide section that will lead to the research and growth section.
As there are constant efforts of the reducing and decreasing the issues and barriers in each and
every divisions. It will relate to the orientated manner that offers higher term of the opportunities
for businesses like Tesco. It also involves technological innovation and growth that will
contribute the level of country's economy that will help them in making progressive with suitable

field. Tesco makes use of the technology such as deployed self check out system so that the time
of the customers are saved and they are given high experience in order to stay loyal for the
company.
Following are some skills and traits which could help entrepreneurs navigate their way through
the macro environment of UK :
IT skills play a major roles today's technology based market. There are many pros of this skill
but cons too if they are not used in a correct way. It can help a new business entity in easily
making its making presence in market and reaching to a big amount of audience through social
media, online websites or applications. This is not possible with just the physical evidence even
if considering the fact that the company is a famous and established brand. This skills can also
help the users in making the operations easy by using several machineries that were complex and
energy usable manually. It makes easier for the customers to track their order and getting
information about products. An example of a successful entrepreneur that uses the corresponding
skill is - Elon Musk is today the richest person of the world. He is a great IT lover and believes
that artificial intelligence will change the world.
Social connectivity skill is an important element that must be look into in the business world to
stay connected with their customer and avoid building bad impact in the society. This includes
paying attention to their customers to identify their needs and the places where the company is
lacking by getting their reviews. Extending the customer relationship can also prove to be a big
aspect in this context. A businessman can make his company's appearance by indulging in the
social activities like festivals, parties, sessions based on their preferred customers through
providing charities or sponsorships. Ratan Tata, chairman of Tata group and a well known name
top businessmen/ industrialists list in the world. Although his net worth is not in competency of
other big businessmen but his donations and charity activities has provided him with an ideal
businessman image in the world and an example of successful entrepreneur using the relevant
skill(Dvouletý, 2017).
Analytical skill this is considered as the most important skill which required in an entrepreneur
when they launch or open a new business. An entrepreneur must be able to identify and analyse
the problem as well as its solutions in a very effective manner whether it is related to inside or
outside the business. Sometimes an entrepreneur of a company have to make quick decision
under pressure and at that time analytical skill play their role. For example like Jeff Bozos who is

the founder of AMAZON co. have excellent analytical skill and because of this skill they have
largest e-commerce marketplace.
Decision making skill this is being considered as the part of analytical skill. An entrepreneur
must have strategic decision making skill which not only help them in making a effective
decision but also help them in taking sound judgement. Sometimes entrepreneur have to choose
between the two or more alternatives at that time decision making skill come tom play. This
improves the ability of an entrepreneur to select between the two or more project to reach to the
best outcome in a very less time. For example like Mark Zuckerberg who is the founder of
Facebook have excellent decision making skill. The decision of purchasing What's app and
Instagram make him one of the richest person on the planet.
Management and leadership skill when an individual enter into a business world they must have
management and leadership skill. This skill not only help them in operating and managing the
different function of an organisation in a very effective manner but also help them to motivate
the employee so that they work hard and achieve the objective of the company. Sometime it's
become very difficult for a manager to manage the conflicts between the worker as well as the
different activities of the company at that time this skill play their role. With the help of excellent
management and leadership skill an entrepreneur can easily manage all the business related
problems. For example like Steve Jobs who was the chairman and co-founder of Apple inc. have
excellent management and leadership skill help the company in becoming one of the largest
seller in technology sector (Entrialgo and Iglesias, 2018) .
Risk taking is being considered as one of the most important characteristics that an entrepreneur
have. An entrepreneur who is able to run their business in a very dynamic environment come
with a dose of taking risk. In business language if an entrepreneur wants higher return then they
have to take higher risk for this. To be come successful business person in life an entrepreneur
must have to take necessary risk which make him succeed because the calculation of risk is being
considered as a thin line between the success and failure.
An entrepreneur must be very discipline and a well organised person. To become a successful
entrepreneur they have to manage their time and other different activities in a very effective
manner(Fotopoulos and Storey, 2019) . They don't do anything which is against their values and
morals. They are more passionate about their work and because of this they are able to achieve a
successful position in their life. The biggest example of risk taker, disciplined and a well

organised person is Bill Gates. Due to this trait he came in the list of richest person all over the
globe. An entrepreneur is also a good leaner. They considered the changes as an opportunity
form them to learn something new.
Broad mindedness is a trait that is useful in the real life and business world too. It makes the
businessmen target on broader level and make plans and policies accordingly. The ones that don't
have this trait put their focuses on small expenses and targets which hold them back to achieve
greatness. The entrepreneurs with this trait help them to gain big insights and give them the risk
taking ability which is one of main qualites that are needed for large profits. Mukesh Ambani is
one's Asia's richest person. He has shown how using of broad minded in the past has made him
achive and an example of the related trait(Neumeyer and et. al., 2019) .
People with goal oriented trait are motivated to do anything which leads them to achieve their
target. This is a also a must have trait in entrepreneurs. As in the journey of successful
businesses, failure gets in the way. People with less determination towards their goal lacks this
trait and in achieving success. Steve jobs, CEO of Apple is an great example of this as he was
failed many times in his success journey, but was highly filled with this trait and achieve a well
known success.
CONCLUSION
From the above report it has been concluded that technology plays a very important role in
making a competitive environment for the different types of organisation. Different types of skill
and knowledge is required in an entrepreneur to sustain their business in the dynamic
environment. This report concluded the different external or macro factor which affect the
working of a company. The external factor has been identify with the help of PEST analyses.
This report also concluded the different skills and traits which are required in an entrepreneur to
run a business in dynamic environment of UK.

REFERENCES
Books and Journals
Bacq, S., Drover, W. and Kim, P.H., 2021. Writing bold, broad, and rigorous review articles in
entrepreneurship. Journal of Business Venturing. 36(6). p.106147.
Chernopyatov, A and et. al., 2018. Entrepreneurship development and business activity in the
Russian Federation. Journal of Entrepreneurship Education. 21(4). pp.1-12.
Durmuşoğlu, Z.D.U., 2018. Assessment of techno-entrepreneurship projects by using Analytical
Hierarchy Process (AHP). Technology in Society. 54. pp.41-46.
Dvouletý, O., 2017. Can policy makers count with positive impact of entrepreneurship on
economic development of the Czech regions?. Journal of Entrepreneurship in Emerging
Economies.
Entrialgo, M. and Iglesias, V., 2018. Are the intentions to entrepreneurship of men and women
shaped differently? The impact of entrepreneurial role-model exposure and
entrepreneurship education. Entrepreneurship Research Journal, 8(1).
Fotopoulos, G. and Storey, D.J., 2019. Public policies to enhance regional entrepreneurship:
another programme failing to deliver?. Small Business Economics. 53(1). pp.189-209.
Neumeyer, X and et. al., 2019. Entrepreneurship ecosystems and women entrepreneurs: A social
capital and network approach. Small Business Economics. 53(2). pp.475-489.
Santos, S.C., Neumeyer, X. and Morris, M.H., 2019. Entrepreneurship education in a poverty
context: An empowerment perspective. Journal of Small Business Management. 57.
pp.6-32.