In the current economic climate in Britain, the risks of starting up a Essay

In the current economic climate in Britain, the risks of starting up a new business outweigh the benefits, address - Essay ExampleAdmittedly, some very recent reports of Britains Office for National Statistics indicate a hopeful improvement in the economic performance of the democracy with regard to its GDP that showed over 3 percent annual growth rate unlike other world economies (Schomber and Milliken). Although the 0.8 percent growth it showed between July and family line ranks its fastest pace in more than three years, the employment growth has not yet showed significant improvement and this makes the obtainability of the economic recovery uncertain. Hence, from an entrepreneurs point of view, the risks of starting up a new business in UK in the current economic climate outweigh the benefits. Some experts believe that Britains economy is built on shaky foundations. To illustrate, as Elliot, the Guardian reporter points out, the economy is exceedingly depending on private, and to a lesser extent to public get. He also says that the so called economic recovery is concentrated only in certain sectors and as a result, manufacturing base is shrinking and the trade dearth is mounting. Obviously, all these reports reveal that UK economy currently is relying on a debt based recovery which will raise long term financial stability concerns. The maturation rate of consumer borrowing is one of the symptoms of this economic crisis. Another point to mention here is that the highlighted GDP growth in fact does not add up for the countrys working class. For instance, over the past 12 months, the use of food banks has gone up by 170% in the nation, and still fivesome million people in the UK are currently living in fuel poverty (Cresswell). The financial position of an economy can influence a companys stability and sustainability. New businesses are highly vulnerable to risks related to the economic stability of the country in which it operates. New entrepreneurs of ten belong to plan financial projections or create good working environment. It is necessary for new businesses to determine if their product or service is strong enough to sustain the market completion and other challenges. Business owners with little knowledge in current trends and socio economic changes tend to fail in their venture. In other words, it is crucial to study the socio economic and political conditions of the business destination before commencing operation. Finding a new appropriate business is also a challenge in the new environment. It requires extensive research to determine the most relevant product and business concept in a competitive environment. One recent valuate report reveals that 31% of the participants opined that finding a new business would be the major challenge for their organisations in 2013 followed by rising costs (14%) and holding onto customers (13%) (MT Management). At this juncture, new entrepreneurs must be cautious about the current econ omic climate in the UK regardless of the recent improvements. This is because even Britains big businesses have retributory started spending their cash piles after the recession. Although expansion is their higher priority, for the time being, their decisions seem to be an experiment. When it comes to new businesses, they usually confront insufficient cash flow, lack of expertise, and knowledge. Although new businesses fail due to a multitude of reasons, there are