Introduction of Entrepreneurship Assignment
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The United Kingdom or the UK is an island located in the northwestern area of the continent of Europe. It is made up of several islands of the world. PEST analyses are a method to assess how favourable an organization's or venture's situation is by analyzing the relevant Economic, Political, technological, social, and social factors. In this article, the learner will concentrate specifically on the United Kingdom, the United nation that consists of England, Wales, Scotland, and Northern Ireland.
PEST Analysis can help businesses make smarter business decision making and increase efficiency by analyzing various aspects that can affect business, including economic, political, technological, social. PEST analysis can help organizations to make important business decision-making decisions and arrange marketing initiatives, developments of the product, as well as research. It is much like the concept of SWOT analysis which means strengths, weaknesses, opportunities and threats.
The learner will try to analyze each component of PEST analysis more in-depth in this essay. In PEST analyses, "P stands for Political Environment. It is a reference to regulations issued by the government or any rules that are specifically formulated for specific industries or businesses. It also involves studying tax policies, including exemptions, if applicable.
The "E" in the PEST analysis refers to economic aspects. This evaluates the economic climate by looking at the influences in the macro-economic system, like the economic growth, interest rate, exchange rate, and also inflation rate. Such characteristics can assist in determining the market, determining the cost for the item, and growth.
"S" is a reference to social elements that create an environment that is macro in nature for the organization. It involves the analysis of societal and potential customers. These variables aid in determining the amount of market. It involves studying the increasing population and age distribution, as well as the attitude towards work, etc. (Mwiya et al. 2018).
The letter "T" in the PEST analysis is a symbol of technology as known to all that technology evolves quickly and customers remain keen to take advantage of advanced technology. It is about knowing the characteristics that can be the result of advanced technologies as well as the rate that technology becomes obsolete (For example operating systems on mobile phones), Automation, speed, and technological innovation. The learner will now discuss the Pestle Analysis of the UK and how the social, political, economic, technological, legal, and environmental elements are affecting the nation.
Literature Review on PEST Analysis
The following are the main political issues impacting the UK.
- Stable Government: Numerous factors influence what determines the security of the state, including law and order, the control of or minimal corruption, as well as the efficiency of the policies of the present system that is in power. If the present sitting government is doing effectively in every such area, that means it will be both stable as well as a successful one as the United Kingdom is the top of all. On the basis of the ratings of the largest bank in the world, the UK is ranked at the highest according to the stability of the political system in 2007 (Valencia-Arias. and Restrepo, 2020).
- System Administration System: the UK is one of the most powerful nations. The government system of the country consists of the democratic parliamentary and constitutional monarchy; the head of the minister is the chief of the government, and the monarch is the state head. At present, Boris Johnson is the premier minister and Queen Elizabeth 2nd reigns as the monarchy of the UK. According to an article by BBC released in 2019, the legal job of the monarch as well as the royal family is primarily traditional and ceremonial. Scottish National Party, labour as well as libel democrats. Conservatives are the four main political parties that control the entire nation.
- Associates and Allies: With a robust economy and an unabated seat at the UN offers the UK the ability to influence international issues such as social, economic, military, cultural and scientific. Both the UK as well as the US share a lot of cultural and social values they share making the two countries formidable allies. Both countries have maintained relationships over time. Nevertheless, critics often rely on the loyalty of the British government to dictators of other nations.
- Country's GDP Changes: The nominal GDP estimate for the country in the year 2019 stood at 2.744 trillion US dollars, which put the economy of the United Kingdom in the sixth position in the world. The per capita GDP of the country in the year 2019 was the equivalent of 41030 US dollars. This is the 20th highest in the world per person (Osman, 2020).
- Multi-Economy: The key to the success of the economy of Britain is diversity. Her market is so varied that it gives equal opportunity for all businesses to flourish and grow. If it can add value to the lives of consumers, there is a need for the market.
- Foreign Direct Investment: If a nation is diverse, this means it gives foreigners a place to develop and flourish. Therefore, its economic system has attracted the interest of many people around the globe. Thus, a lot of investors and businesses have invested their funds and capital into a variety of fields, including real properties, science, and technology, as well as food, clothing, entertainment, grocery stores and sports.
- Tax Rate: The current corporation tax for businesses is currently 19 percent in 2016. The government announced that it was planning to reduce the tax rate down to 18 percent by 2020. If this happens, the government will be able to attract more investors.
- Inflation: The present inflation rate of the United Kingdom stands at 1.94 per cent. In 2019 it was around 1.7 per cent (Richardson, 2018). This depicts that the rate has increased by around 3.1 per cent since the year 2017 (Brydges and Hracs, 2019). According to the rule of the English bank, it should not exceed 2 per cent. While it is only a tiny increase and does not mean anything, it is an increase. Based on the opinions of some financial analysts, the rise in the rate of inflation is done; businesses should not witness any major changes in the near future.
- Population: According to the office's national statistics, the number of people living in the UK is projected to be 73.4 million at the end of 2039 (Nahid et al. 2019). This is due to the fact that currently, the rate of births is higher than the mortality rate. Therefore, the labour market and health system would be the first to be impacted. It will also open up opportunities for businesses to cater to the needs of a larger population. It can be known to all that there is a reason why the UK is the world's largest consumer market. Real estate companies, insurance as well, and health care companies have made a significant profit during the recent increase in the population.
- Health Care System: Many people spend a significant amount of money on health insurance. Therefore, the health care system in the UK has made significant progress in recent years in terms of offering quality services to patients. This is why people across the globe prefer the British health system to treat severe and complex ailments and injuries.
- Education: The most interesting aspect of the education system in the United Kingdom is that it is constantly making itself up to date with the most current information. The system of education in the UK is based on contemporary mythologies of learning and teaching (Osman, 2020). Thus, the qualifications of those who are part of the British school system of education are accepted throughout the world.
- Income level: The drop in unemployment and a moderate inflation rate places UK citizens among the highest income earners. So, per capita, the country is higher and is among the top 20 nations.
The nation has one of the most renowned research and development institutions, and they are striving to keep cutting through the barriers in every area. Her economy provides great opportunities for entrepreneurs. Every innovation and improvement helps to boost the economy of the country. Today, the country is making greater technological advancements. Even British tech institutions are gaining in comparison to Indian, Japanese, Korean and American institutions.
KNOWLEDGE AND UNDERSTANDING SKILLS
Skills are things that individuals can master, while traits are characteristics that are a part of the character. People acquire skills throughout their lives through personal experiences.
While the team's skill and 'trait is often utilized to refer to the same thing together there is an important distinction.
Humans are all born with certain traits and can continue to develop them throughout the course of their lives. Skills, however, are acquired later in the process of life. The traits and the skills together form the basis for professional expertise and knowledge (Richardson, 2018). The traits are related to natural talent, but they also contribute to the speed at which someone learns the new skill, along with motivation, curiosity and learning opportunities.
The traits of a successful entrepreneur are the common attributes, skills and thinking patterns that are associated with successful entrepreneurs. While certain entrepreneurs have these traits in their genes, but others are able to develop these traits. They include:
- Being a great leader- An entrepreneur must run a business, and the majority of people in this field are in charge of its beginning as well.
- Being optimistic- Optimism is described as being focused on the positives and being emotionally resilient to negative events.
- Being confident- Confidence is the conviction that one possesses the necessary resources for something. Entrepreneurs seek loans from banks to hire workers, build teams, and establish connections with suppliers and customers. It is, therefore, crucial for entrepreneurs to feel confident about their abilities to accomplish all of these things successfully (Mirza and Ensign, 2021).
- Being passionate- Passionate about the process of managing and building the business will aid in inputting into the work required for an effective business.
- Being disciplined- Discipline can assist to achieve success as an entrepreneur. Entrepreneurs must operate on their own, set their own goals, and overcome challenges.
In the tense and competitive business environment that is characterized by new venture creation, numerous researchers have concluded that entrepreneurs benefit from having a high sense of personal confidence in their abilities to achieve their goals and have a sharp eye for new ideas to discover new markets and products (Norton, 2020). Self-efficacy is a term that means a person's "belief that they are able to perform the tasks assigned to them and fulfil their roles and is directly linked to goals, expectations, as well as determination" (Frost and Frost, 2021). Self-efficacy is correlated with a performance at work and small-business expansion, Academic performance, and the choice of a career. This can be calculated based on two methods or benchmarks of accuracy, that is, either general self-efficacy or domain-specific Entrepreneurial Self-Efficacy (ESE). The majority of researchers focus on more context-based self-efficacy.
One of the most important characteristics in the literature on entrepreneurship is the locus of control (LOC). Someone who has an internal LOC believes that personal choices that they have determined their life, whereas those people who have an external LOC think that the real controlling factors are random, fate, or other the environment that cannot be influenced. The work of Rotter's (1954) concept of learning through social interaction was the first to introduce the LOC concept (Kim. and Parker, 2021). People who have internal LOC is of belief that they are able to control the outcomes using their abilities, efforts, and talents instead of external forces influencing the outcome. Recent research has shown that the beliefs in internal control with the possibility to engage in entrepreneurial endeavours.
The results of our study suggest that the current level of behavioural control is the main element in the entrepreneurial intent of engineering school students. This is why it is crucial that university efforts to offer an education in entrepreneurship and encourage entrepreneurial spirit are accompanied by programs to build capacity that focus on identifying the opportunities that the businesses give and economic strategies which allow the people in business in believing that they do not have to be reliant on only their own capabilities, however, they also realize that financial aid is available to help them start an enterprise. Future research will be able to raise the problem of subjective standards since the present articles did not verify the impact of social networks in determining entrepreneurial goals. Therefore, this becomes crucial to examine the social determinants and "role examples" that students at the undergraduate level consider when deciding to establish a company. In contrast, when it comes to methodological considerations, it is recommended that longitudinal approaches are crucial in defining the process of transitioning between intent and actions when it comes to starting a business. This will allow the circumstances and events that allow this process to be determined. Additionally, the inclusion of qualitative methodological approaches could allow to explore issues like the importance of subjective norms and to develop new variables in the mediating process that could determine the motivation for entrepreneurs in the developing world. It is suggested that in the future comparative studies be conducted comparing students from various academic programs within the same university to determine the impact of a particular educational curriculum and the impact of the time devoted by students on the decisions they make to establish a company. Additionally, it is worthwhile to study other factors that academic research suggests are crucial to the success of a company, such as self-efficacy perception as well as risk-taking.
- Kim, N.K.N. and Parker, S.C., 2021. Entrepreneurial homeworkers. Small Business Economics, 57(3), pp.1427-1451.
- Norton, L.A., 2020 Copper Sheathing, Industrial Espionage and an Eminent American Entrepreneur. Coriolis: the Interdisciplinary Journal of Maritime Studies, 9.
- Mirza, J. and Ensign, P.C., 2021. New direction for a Sri Lankan apparel venture: chasing a capitalist or cooperative dream. Small Enterprise Research, 28(1), pp.83-94.
- Osman, O.S., 2020. Transforming from refugees to entrepreneurs in Britain. European Journal of Business and Management Research, 5(6).
- Frost, S.L. and Frost, A.K., 2021. Taxi Shanghai: Entrepreneurship and semi-colonial context. Business History, pp.1-30.
- Richardson, R.D., 2018. Business Enterprise, Consumer Culture and Civic Engagement, 1890s-1930s: Sheffield Entrepreneur, John Graves. Sheffield Hallam University (United Kingdom).
- Valencia-Arias, A. and Restrepo, L.A.M., 2020. Entrepreneurial intentions among engineering students: Applying a theory of planned behavior perspective. Periodica Polytechnica Social and Management Sciences, 28(1), pp.59-69.
- Mwiya, B.M., Wang, Y., Kaulungombe, B. and Kayekesi, M., 2018. Exploring entrepreneurial intention’s mediating role in the relationship between self-efficacy and nascent behaviour: evidence from Zambia, Africa. Journal of Small Business and Enterprise Development.
- Brydges, T. and Hracs, B.J., 2019. What motivates millennials? How intersectionality shapes the working lives of female entrepreneurs in Canada’s fashion industry. Gender, Place & Culture, 26(4), pp.510-532.
- Nahid, F., Gomez, E.T. and Yacob, S., 2019. Entrepreneurship, state–business ties and business groups in Bangladesh. Journal of South Asian Development, 14(3), pp.367-390.