The Entrepreneurial Start Up
Table of Contents
1. Introduction
2. Industry Background
3. Entrepreneurship and Critical Success/Risk Factors
4. Business Plan and Strategic Planning
5. Analysis of External Environment (PEST/PESTLE)
Political/Legal Environment
Economic Environment
Social-cultural Environment
Technological Environment
Natural Environment
6. Industry Analysis (Five Porter’s Framework)
7. SWOT Analysis
8. Conclusion
Reference List
1. Introduction
This paper relates to entrepreneurship and business planning. As mentioned by Porter (1990), entrepreneurs are growth engine of an economic growth and innovation. In addition, entrepreneurship enhances economic competitiveness thereby contributing to higher wellbeing (Wennekers and Thurik 1999). Furthermore, its role has intensified in the modern era of new technologies and globalisation (Wennekers and Thurik 1999). As suggested by Gries and Naude (2010), entrepreneurs support economic transformation by boosting transition from agriculture to manufacturing and services. Entrepreneurship and start-ups affect an economy at different levels. Hence, it is important to consider the concept and identify the key risk and success factors in this field.
Although entrepreneurship is regarded largely as positive, the failure rate is astonishing. According to Stucki (2014), more than 80% of start-ups end up in failure. On the other hand, Shane (2016) notes that the failure tends to decline due to new technologies, better education and lower activity. Nevertheless, starting a new venture is risky. There are many causes of failure, but planning is among the key critical success factors. Stucki (2014) suggests that the lack of financial resources is one cause of the failure. As noted by Scarborough (2012), a strategic approach to entrepreneurship and business planning help improve an entrepreneur’s likelihood to succeed.
Therefore, this paper aims to discuss and critically evaluate planning and entrepreneurship. To achieve this, the paper is structure to flow from business description and risk/success factors evaluation to environmental analysis using such models as PESTLE. Porter’s Five Forces and SWOT. Hence, the first part relates to risk/success factors of entrepreneurship. Then, the next section discusses business planning and its relevance in business. Subsequent section applies the models mentioned above to the chosen industry. A final section concludes the paper summarising major findings.
2. Industry Background
UK manufacturing is chosen as the target industry. The industry has been regressing in recent decades due to globalisation. Its share in the UK GDP has shrunk considerably. However, it is still among the most innovative and fundamental sectors of the country’s economy. Furthermore, Brexit and cheaper UK pound will certainly support the manufacturing competitiveness in the UK. The paper will focus on Rolls Royce Company in the analysis. According to The Manufacturer (2016), the UK is the 11th largest manufacturer in the world. The sector contributes about 11% to total Gross Value Added (GVA) and accounts for more than a half of British exports (The Manufacturer 2016). According to EFF (2016), the UK manufacturing employs about 2.6 million …
