PEST Analysis Of Entrepreneurship: Political And Technological Factors (Essay Sample)
Conduct a pest analysis of entrepreneurship.source..
PEST Analysis of Entrepreneurship
Big names like Bill Gates, Oprah Winfrey, Steve Jobs, and Andrew Carnegie epitomize the heights of successful entrepreneurship can attract. The potential for earning, freedom and the ensuing sense of achievement have convinced many people that it is worthwhile to become an entrepreneur. This paper presents a PEST analysis of entrepreneurship. A business is subject to political, economic, social, and technological factors, all of which are beyond the influence of the business, a situation that is exacerbated by the size of small and medium-sized enterprises (SMEs). Entrepreneurial success is achievable by being conscious and agile to the changes in political, economic, social, and technological environments.
Political factors encompass political institutions and processes, legal issues, governments and public attitudes towards the industry. Changes in the political climate of a country or region in which an entrepreneur operates attract risks as well as opportunities. Unfortunately, the sheer size of a typical entrepreneurial venture increases its susceptibility to the mildest change in the environment; such startups are often small and lacking a robust network of resources compared to larger businesses against which they compete nonetheless. An entrepreneur, too, must focus on complying with the regulatory requirements, such as tax regulations, cope with barriers to entry into the industry, and still spare some resources for product development, staffing, branding, and marketing (Frue par. 6). This simultaneous pursuit of different goals with limiting capital not only reduces the ability to absorb the adverse effects of each political variable, but also attracts high operating costs. Therefore, it is imperative that entrepreneurs focus on and keep track of political agendas that are meant to promote the success of SMEs.
The overall state of a country or region's economy defines its economic environment. A country's fiscal policies, interest, inflation, and stock exchange rates are some of the variables subsumed under economic factors. The economic landscape can make or break a business, partly because it influences business ideas and the population's purchasing power necessary for sustaining the SME throughout its different growth phases. Frue explains that startups truly give back to the society, by providing employment opportunities for instance, but they need genuine support from the latter to get to this point; established companies should encourage entrepreneurs by investing in their products and helping them gain a market base (par. 8). This support notwithstanding, an entrepre