Unit 1- Enterprise in the business world
Assessor: Mr Rahman
Assignment 1- Investigating the business environment
Task 1 (P1, P2, P3, M1, M2, M3, D1)

How additional factors can affect your start up business
Political issues, Level and type of government support for business, Taxation, The economy e.g. level of employment, Inflation, Exchange rates, Costs of loans. (P1)

The government within the East London area are very pro.
-Tower Hamlets provide grants The government sometimes give a little business some money to start up. They use this money to buy some products to sell or use it to rent a building.
-Build low rent buildings
The government build buildings that are used for businesses to rent at a low price. They rent these buildings to start up their businesses or move their businesses.
-Infrastructure
Lots of people come East London to work because it has many good jobs with high income which is why there is lots of infrastructure like tube stations and bus stops.

-Taxation, Co-operation tax at 20% on their profits
Every business that is in Tower Hamlets has to pay 20% of their profits they earn to the government.
-Level of employment is high
In London the level of employment is high so some jobs will be hard to find that is why if you employ 5 people you increase the employment rate and also give those people jobs so they now earn money.
-High population
London is a high populated area so it will be easier to find people to employ because there are so many people
-Close transport; Bethnal Green Station, Bethnal Green Over ground, Shoreditch Station, Liverpool Station
Close transport means that people from far places like Kent and Essex can come quicker to their place of work it also means that they will be on time.
-Inflation (general rise of prices)
The more the economy increase the more the prices of everything go up. However, the inflation target is 2% but at December we have gone to 0.05% which is bad news because it shows that the economy is decreasing or declining. The screenshot shows the percentage of inflation from 2000-2012 (CPI, The Blue One)

-Everything is finite
This means that every recourse, everything in the world is limited and will soon run out therefore the prices of these things that are running out quicker than the others is going up rapidly like coal or oil
-Cost of loans
The amount of money from loans you can take has gone up. Also the amount you take out will have interest which means when you re pay your loan you will have to pay a little extra by how much interest has been added

-How local factors can impact your start up business. Location of business, requirements for recourse. E.g. premises, staff, equipment, location of suppliers, competitors and customers.

The Bethnal Green area is very busy and is on the central line. There are many people living in this area. This is good because then there are more people to come to your business. Bethnal Green is also a transport hotspot because there are many trains and busses in the area. There are also many schools in this area such as Oaklands and BGA which is NO.1 in the borough. There are many different train stations in the area such as Shoreditch which is an underground train and Cambridge Heath and Liverpool Street station. In the area there is a D3 bus and a number 8 bus straight to and from Stratford, Westfield.

Social trends * What are the social trends in this area?
-In this area there are a lot of people attending school here therefore there are a lot of young people in the area. There are also a lot of older people like parents and also many other people due to the number of different businesses here. There are many new houses being made here so many more people are moving into here. This is good because for my business there would be many different types of people to buy my products and a lot of them as well. * Multicultural community
-In the Bethnal Green area there are many people from different cultures living in the area and visiting it. This is good for my business because then lots of different people will buy my product and because they are from a different culture they will have more trust in me and also tell their friends etc.

* Increasing life expectancy
-Increasing life expectancy would mean the elderly people will come to my business more and also tell their family about me which will mean I could potentially become a generations local business when they need what I serve they will come to me straight away.

* Education
-There are many schools in this area and the youth are easily attracted by what they see and if they see something like what my business are selling then they will tell their parents to buy it for them. If they are satisfied by my product they will recommend it to other people who will also take a look at my business. 1. 2.

* Increase in flexible working
-This shows I am willing to go out of my way in terms of helping my customers and making sure they are all satisfied with my business. Also days such as Boxing Day I will need to start work earlier because people will already be at my shop before I open compared to another ordinary day. * Longer commutes to work
-The benefits of having a longer commute to work are because you are likely to have more customers because of that. People would think that because they travel longer the business must be good or he wouldn’t travel for it.

Technology trends * Increase use of ICT
-One use of ICT is that my business can be advertised. This is good because then my business will get more public awareness and more customers. Another thing is people can read and locate my business on the internet so then it means I will have even more customers.

* Use of social media in every aspect of life
-Sites like Twitter, Facebook and Instagram are very good for awareness because they all have over 10 million users as well as famous people. People who use these sites usually promote or talk about things like businesses therefore if one person said something good about my business it will be quickly shared around the World Wide Web.

* Fast moving pace of technology – iPad, drones
-These fast moving paces of technology also include faster internet such as 4G and BT Fibre Broadband. This means more people can access the internet more and in different places and can find my business and tell other people about it.

Ethical trends * Ethical concerns of customers * -This is good for my business because I will use materials from other countries in my products. For example if I have a clothes shop I can use materials like from India and Africa and if I have a restaurant I can get ingredients or make food from different cultures. * Carbon footprint
-If my company produces less CO2 from making my products then people will like me more and will have no problems in terms of my production schemes because it is neither hurting them or the environment. * Child labour
-My business needs to make sure they buy their products from places where child labour is not a thing because otherwise when people find out they will have a reason to hate and disagree with my business because I buy my products from somewhere where they do unethical things. * Low pay
-People in London are not paid enough to live on therefore I will make sure my workers are paid enough money to live on so they stay in my job and don’t go looking for another job. * Animal welfare
-Similar to child labour if anyone I buy my products from do anything to hurt animals or destroy animal habitats then I will get a lot of hate and people will not buy from my business so I need to make sure the people I buy my products from don’t destroy animal habitats or hurt animals.
Environmental trends * Use of renewable energy
-If I use renewable energy it will be better because then I will save a lot of money on electricity or power/energy. Also my business will be known as a ‘green’ or eco friendly business. This will mean people will support me more and want to buy from my business since I help the environment * Recycling
-If I recycle then it is a similar thing to using renewable energy that I have to spend less and also people will see me as a good business and not someone that will destroy the earth by filling up landfill sites. People will then buy from me seeing as I recycle and am eco friendly. * Cost of energy
-People pay so much money for energy these days however they do not use it to the full. The cost of energy is quite high therefore they are paying so much money for no reason also it is bad for the environment if they are paying for loads of energy and never use it because it is being wasted and for no reason too

| Use of social media | Recycling | JD Sports | JD Sports have a Facebook page, Twitter account, an Instagram and can be found on Google. They usually use these to inform customers about deals, competitions and new products that normally come to the shop | They recycle packaging and they even recycle shoes. They do this because then they can then re-use these to save money and not hurt the environment. This makes customers like them more and choose to buy from them rather than other competing businesses | Bangla Town | Bangla Town do not use social media because they sometimes advertise on Bengali channels like ATN Bangla and Chanel S. They do not use social media because they do not need that much awareness as they are a local grocery. | Bangla Town recycle old packing boxes and rappers. They do this because they do not need them and also they do not want to waste them so they recycle them. This is good because people will see them as a good business. |

Final Summary
The advantages of starting a business here would be the fact that there are a lot of people living in this area so therefore a lot of different people can come to my business. As well as that there are a lot of tourists and people coming from different places so there will be a lot of potential customers. Bethnal Green is also a transport hotspot and there are numerous ways of coming here so it is easily accessible so therefore these people can come to my business whenever they want and it is quick as well. Another advantage is that this area is quite a wealthy area because the people in this area or that come to this area are willing to spend therefore there will be more potential customers. On the other hand this area is mostly one race, Asian. This isn’t good because I want to get my product out to a lot of people not just one race. Another disadvantage is that there are many other of the businesses here therefore people will not only look at my business alone as well as the other ones. Another disadvantage is that this area is mostly under construction and it’s not always the best place to start a business because of the restricted areas here.