ENTREPRENEURSHIP
ESSAY
INTRODUCTION
The assignment consists of an essay that enables with development of knowledge of concepts associated with the topic Entrepreneurship. Entrepreneurship is considered to be one of the major factors of production by the economists. Other factors being land, labor and capital. Entrepreneurship is the process that mixes these three factors appropriately to produce or manufacture goods through development of business plan. This capability of developing, organizing and managing business operations is referred to as entrepreneurship. The objective of entrepreneurship is to generate profits and eventually referred to as new start-up (Frederick et al., 2018). Entrepreneurship can be of different types such as small business, scalable startup, large company and social entrepreneurship. It is one of the emerging concepts that require appropriate addressing in order to gain prominence. Also, it has the potential to allow economic growth to any economy that makes it more important and area of concern.
The assignment attempts to reflect the theoretical knowledge regarding entrepreneurship. Also, the same attempts to acknowledge the difference between entrepreneurial traits and skills through analysing the macro business environment of the UK and identification of skills the acquisition of those will be helpful by the entrepreneurs. Essay also facilitates with the skills that are essential in for entrepreneurs in order to start a business in the UK. The essay also reflects upon the concept of opportunity recognition process along with having an explanation of the importance of entrepreneurship and enterprise for the economy. The completion of the assignment is enabled through application of learning attained from the module and also through the use of information from secondary resources.
MAIN BODY
Entrepreneurship can be referred to the approach or process undertaken by any individual to develop a business or businesses with the primary objective of generating profits. Entrepreneurship attempts to find the solution to problems through application of different ways. Also, entrepreneurs are considered to be associated with development of creative solutions and innovation. Entrepreneurs are their own boss and take every possible and feasible decision in order to enable the business to generate more profits. Concerning that there are different types of entrepreneurship, the differentiation factor is the business objective (Kuratko, 2016). For example, startup entrepreneurship attempts to disrupt the market through providing or launching and innovative product that eventually fulfils the needs that are never filled earlier. Also, concerning a large company, the objectives of entrepreneurship for this business can be diversifying the existing product portfolio, expanding the market etc. Entrepreneurship has the potential to disrupt the market through making appropriate use of technology and innovative business models those results in development of new demand in the market and fulfilment of these demands in the market results in the development of enterprise (Frederick et al., 2018).
Entrepreneurship is of significant importance either it be considered in isolation or in context with the economy. Promotion or growth of entrepreneurship is instrumental in development innovative ideas and business innovations. Entrepreneurships is comprised of developing and using best technologies that are instrumental in resolving the evolving demands and issues of the customer base (Robles and Zárraga-Rodríguez, 2015). As entrepreneurship addresses the demands of customer, this eventually leads to development of competitive advantage for the enterprise. Apart from this, entrepreneurship is instrumental in generating employment that is considered to be one of the factors that reflects the growth of a country. Without entrepreneurship, there will be no requirement of hiring candidates and thus there will be not employment. Entrepreneurship employs the entrepreneur itself along with other expertise. Similarly if there is an increase in entrepreneurship, this will leads to development of more employment opportunities. Other that innovation and employment, entrepreneurship is instrumental in creating change. As entrepreneurs are having high ambitions, this sometimes makes them to create changes that are of global scale. This can be done through development of a new product or innovative business model etc. This reflects that entrepreneurship attempts to make world a better place through their developments (Acs et al., 2015). Entrepreneurship is also effective in working for social cause and community development and sometimes this objective becomes their business idea that allows them to attain significant popularity for their sustainable efforts and eventually leads to business growth. Even entrepreneurs are considered to be among the biggest donors. This contribution of entrepreneurship facilitates the poor people and communities to access better standard facilities. Apart from this, entrepreneurship results in increasing the national income of the country. This is as entrepreneurship leads to production that eventually boost the activities in the economy and circulation of money along with increasing employment eventually leads to increase in the national income. Similarly it also increases the GDP i.e. gross domestic product of the country as it increases the production activities in the economy (Robles and Zárraga-Rodríguez, 2015). Thus entrepreneurship not only enables the entrepreneur with increased profits but is also having social and economic benefits that eventually facilitates a country with both economic development and economic growth.
Effectiveness of entrepreneurship depends on the efficiency of entrepreneur. Entrepreneur is the fuel that brings in idea, innovation, resources and capital to an organization that eventually makes an enterprise capable of achieving its objectives. There are certain factors that motivate an individual to be an entrepreneur. Entrepreneurs are the ones that are willing to make changes in the business environment, product, process or model with the objective of making the world a better place to live (Mahto and McDowell, 2018). This can comprised of eliminating poverty, development of consumer friendly, low cost, high quality, more durable etc. kind of products that generates value for people. Also, entrepreneurs are the ones that don’t want to be subordinates to any individual. They want to be their own boss as they want to work independently and is having complete faith of self-capabilities. This may results in lack of guidance but if succeeded then leads to large scale growth of the business. Entrepreneurs are ones those require flexible and remote working conditions and cannot sit in an office for their whole career (Mahto and McDowell, 2018). Apart from these characteristics, creative mind, ambitious, curiosity and unemployment are the factors that motivate an individual to be an entrepreneur.
The numbers of entrepreneurs are increasing that eventually compelling to acknowledge the fact that either the macro-environment of the UK is supportive of facilitating these entrepreneurswith appropriate opportunities or not. And if not, that what are the entrepreneurial skills and traits that are required to be developed in order to attain growth. In order to acknowledge this, it is essential to conduct an analysis of the UK macro-environment (Perera, 2017). This can be done through the use of PEST analysis that is acronym for analysing the political, economic, social and technological factors.
Concerning the political factors, the UK is having a stable government with low corruption that supports the development of entrepreneurship. UK is having a ranking that is among the top ones in terms of political stability. Also, the country is having effective administrative structure that motivates stable channel of command. Concerning the effectiveness of allies of the UK, it was instrument before BREXIT. BREXIT eventually leads to separating the UK from the rest of the EU. This eventually develops rifts in the relation of UK with other EU countries and thus the government requires developing these relations in order to re-establish strategic ties (Gudgin et al., 2018).
Concerning the economic factors, the UK is the 6th largest economy in the world with a GDP of around 2.7 trillion USD. Also, the UK is having 20th largest per capita income across the globe. Apart from this, the UK is having an economy that consists of appropriate diversity. This eventually enables significant opportunities to business and enterprises associated with any industry. But this can be an opportunity and not a threat in cases only when there is adequate demand of the product and the product is capable of providing customers with added value. Concerning the diversified customer base of the UK, it is instrumental in attracting FDI in multiple industries. Also, it was announced to decrease the tax rate to 18% from earlier 19% eventually attracting more investments. One of the dis-incentivizing factors is the inflation that is increased and is on an all-time high in last 30 years due to Omicron. But this will be for short term as the economy is returning to normalcy (Holland and te Velde, 2022). Concerning the unemployment rate, the UK is having 3.9% unemployment rate in 2020 which the increased to 4.5% in 2021 but is expected to decrease in 2022.
Concerning the social factors, the birth rate is more that mortality rates that eventually resulting in increasing population. This eventually results in maximum increase of demand in labor market and healthcare market but also other businesses will observe increase in demand as the population increases. The healthcare system of the UK is of effective quality and is having demand across the globe (Spolander et al., 2016). Concerning the education system, the same of the UK is considered to be one of the most dynamic that updates every year. Concerning the income distance, it is close to stable that reflects that the UK is having a stable social status.
Concerning the technological factors, the UK is having some of the prominent research institutions across the globe and is considered to be one of the best places for research and development. UK is having significant opportunity for innovative business ideas that only is having government support but is also having availability of appropriate resources (Abbott, 2015). The UK is advancing into technology research and even succeeding Japanese, American and Korean institutes.
Concerning the PEST analysis of the UK macro-environment, entrepreneurs are required to develop certain skills and required to have certain traits that eventually makes them thrive through and attain growth. Entrepreneurial skills are the ones that an entrepreneur can develop being part of a process whereas entrepreneurial traits are the ones that an entrepreneur is having by birth .
Concerning the entrepreneurial skills that are essential for an entrepreneur for the future, one of the most prominent are digital skills. Digital skills enables an entrepreneur to develop a business that is capable of catering to the needs of tech-savy customer base and can also use these digital skills in developing better understanding of technologies. Apart from this, networking and time management are other entrepreneurial skills that facilitate entrepreneurs in development of better relations and networks with other businesses, suppliers and distributors. This eventually enables them in developing better relation with business after the BREXIT (Sousa, 2018). Communication, sales conversion and branding are other skills that should be acquired by an entrepreneur in order to better manage the workforce and evolving customer expectations.
Concerning the entrepreneurial traits, the one that are essentially required by an individual as entrepreneur are passion and adaptation. Passion is instrumental in enabling self-motivation in an entrepreneur that is of significant importance for the cultivation of new ideas and their implementation. Adaptation is another essential trait for the entrepreneurs as they enables them to work in diversified condition and accordingly can manage business functioning in uncertain situation. Also, an entrepreneur is required to be self-motivated as the ideas he may work on seems to be foolish but in order to accomplish the objectives, self-motivation is essential (Johnson et al., 2018). Thus these skills and traits are of significant importance in enabling the development of entrepreneurship that eventually results in development of the economy.
CONCLUSION
Concerning the completion of the essay, it can be stated that entrepreneurship is one of the important economic concept that eventually having a significant impact over the social and economic conditions of an economy. The macro-environment of any country will be having significant impact over the functioning of entrepreneurs and thus is required being analysed in order to develop appropriate entrepreneurial skills and traits. This enables development of both entrepreneurship and entrepreneurs.
REFERENCES
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Acs, Z.J., Szerb, L. and Autio, E., 2015. National systems of entrepreneurship. In Global Entrepreneurship and Development Index 2014 (pp. 13-26). Springer, Cham.
Frederick, H., O'Connor, A. and Kuratko, D.F., 2018. Entrepreneurship. Cengage AU.
Gudgin, G., Coutts, K., Gibson, N. and Buchanan, J., 2018. The macro-economic impact of Brexit: using the CBR macro-economic model of the UK economy (UKMOD). Journal of Self-Governance and Management Economics, 6(2), pp.7-49.
Holland, D. and te Velde, D.W., 2022. The Macro-Economic Effects of UK Aid Returning to 0.7 per cent of GNI (No. 535). National Institute of Economic and Social Research.
Johnson, S.L., Madole, J.W. and Freeman, M.A., 2018. Mania risk and entrepreneurship: Overlapping personality traits. Academy of Management Perspectives, 32(2), pp.207-227.
Kuratko, D.F., 2016. Entrepreneurship: Theory, process, and practice. Cengage learning.
Mahto, R.V. and McDowell, W.C., 2018. Entrepreneurial motivation: a non-entrepreneur’s journey to become an entrepreneur. International Entrepreneurship and Management Journal, 14(3), pp.513-526.
Perera, R., 2017. The PESTLE analysis. Nerdynaut.
Robles, L. and Zárraga-Rodríguez, M., 2015. Key competencies for entrepreneurship. Procedia Economics and Finance, 23, pp.828-832.
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Spolander, G., Engelbrecht, L. and Pullen Sansfaçon, A., 2016. Social work and macro-economic neoliberalism: Beyond the social justice rhetoric. European Journal of Social Work, 19(5), pp.634-649.
