Current Economic Climate in Britain - Essay Example

Topic: Current Economic Climate in Britain The performance of any given economy influences the businesses hosted in that economy in one way or another. For this reason, businesses are keen to monitor economic progress in the environment within they operate. When economic growth and development is positive and favourable, businesses and all other sectors in that environment thrive. However, an economic climate that is characterized by crises affects businesses negatively. Essentially, the benefits reaped from any given business are influenced by the underlying financial and economic risks as well as the current economic climate. The economic climate in Britain affects businesses differently. The realized growth and development of the economy in Britain impacts on businesses depending on the sector they serve and actual risks they face within and across their operations (O'Kane, 2012, p.156). Even with the realized economic progress, competition has heightened across all industries. Free market practices have become predominant, forcing businesses to engage in intense competition in order to secure significant market shares. Most importantly, Britain is not immune to the euro crisis as well as global financial and economic hardships. For this reason, risks might seem to outweigh benefits in starting up a new business. However, this might not be the case. The economic climate, whether it progresses, stagnates, or deteriorates, does not directly translate to business failure if risks are involved. The business environment can hardly be immune to risks and economic hardships. Business diversity in the economy context has to cope with many eventualities, which if not managed can be catastrophic to many businesses. Even in the best of economies in the world, risks cannot be ignored. Rather, the presence of risks is acknowledged and the necessary course of action taken to manage the risks. Business competition in Britain’s economy has been observed to intensify over time (O'Kane, 2012, p.107). Following this trend, the most influential risks for businesses are operational, financial, or economic in nature. The benefits realized by any given business in the economy depend on the opportunity identified, strategies taken to exploit the opportunity, decision making, and management practices employed. These aspects are essential in countering business start-up risks that could negatively affect the performance of the business. Starting up a new business takes into account several critical subjects, namely: capital, income, expertise, time and business management, and education (Stokes & Wilson, 2010, p.377). The extent to which these subjects are aligned with the goals and objectives of starting up a new business influences the outcome of the whole process relative to risks and benefits. Even with a stagnating economic progress or an economic climate that does not seem to foster business success, creativity and innovation can result in business benefits that outweigh the underlying risks. The approach and perspective of setting up a new business venture require that open-mindedness be in play. New business establishment cannot be taken without a number of alternatives. Things do not always go as planned, making it essential to explore a number of alternatives before the decision is implemented. This raises chances of success and allows the business party to identify and make strategic plans that oversee competitive business operations. Although the economy can pose substantial complications to the business sector, having risks that outweigh the underlying benefits is not always the realized outcome. Needs, tastes, and preferences relative to products and services are diverse and dynamic. New business enterprises target those areas that the already existing enterprises have failed to satisfy. On the same note, operational gaps that existing businesses exhibit are taken advantage of by the upcoming business enterprises. Even with hard economic times, the market demands are still evident. The demand may not be as high as that of a thriving economy, but the common denominator is that there are market needs that need to be met. The creativity, competitiveness, and innovativeness possessed by a new business enterprise are the critical factors that drive new business within and without Britain. With the right combination of capital, income, expertise, time and business management, and education, it is possible to overcome the risks posed by the economic climate (Stokes & Wilson, 2010, p.394). When this is said and done, operationalization of business becomes effective and efficient. Consequently, the realized benefits outweigh any economy-driven risks that would negatively affect business enterprises. The economic climate in Britain continues to open up and expose its sectors to the international community. This translates to a diversified market opportunity for Britain-based business enterprises. Whilst the major concern in this respect relates to the benefits that Britain’s businesses reap from international community, it is important to point out that there are both positive and negative issues to this matter. Market needs and consumer tastes and preferences vary across local, national, regional, and international markets. Taking this into account, it is vital for new businesses to approach the Britain market with an open mind, diverse, and dynamic perspectives of operation. The financial, economic, and operational risks that the current economic climate in Britain exhibits do not necessarily reflect a risk aspect that outweighs the underlying business benefits (Barrow, 2011, p.316). New business ventures in the current times are highly technology-driven. Cost of operation can be managed effectively, thus minimizing financial obligations to the business owner. In this respect, there are many and differentiated economic aspects that favour business success in Britain’s economic context. In conclusion, as the economy grows and develops, competition in the business sector intensifies. However, markets are becoming more diversified through persistent growth, development, and internationalization. In the same line, financial sources are present in different and suitable packages. Consultative services and business advice is readily available. In other words, activities involved in setting up a new business can manoeuver the economic climate to realize benefits that outweigh the underlying risks. Reference List Barrow, C. (2011). Starting a Business for Dummies, UK Edition, London: John Wiley & Sons. O'Kane, B. (2012). Starting a Business in Britain: A Comprehensive Guide and Directory, London: Ebury Publishing. Stokes, D. R. & Wilson, N. (2010). Small Business Management & Entrepreneurship, London: Cengage Learning. Read More