How current trends will impact on a start-up business

Social trendso Population changeso Households and familyo Educationo Labour marketo Travel for work

Technology trendso Increased use of ICT

Environmental trendso Increase in renewable energy

Ethical trendso Values of customers

Population changeso As shown by the graph, the population in Birmingham is currently

growing at a fast rate. This is good for businesses as it means that there is constant potential new customers. It also means that there will be no shortage of people to employ to work for the business.

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Households and familieso Changes in the household and families will effect different

businesses in different ways. For example, if there are a higher proportion of families in an area, businesses in the leisure sector may be more successful. This is currently Birmingham’s household situation:

Educationo The more educated a country is, the more sophisticated (and generally

higher paying) the jobs are. By extension, the better the jobs, the wealthier the country because there's more money that can be spent. In Birmingham, each year there is an increase in students achieving GCSEs and A-levels. This leads to higher paying jobs and more disposable income. This will therefore have a positive effect on business.

Labour Marketo The labour market is the name given to the market in

which workers find paying work, employers find willing workers, and wage rates are determined.

o The unemployment rate in Birmingham is currently:

This means that finding employees that will work at flexible hours should be successful. With the education also increasing in Birmingham, the skills of these people is also likely to be high.

Travel for worko People are now travelling further to get to work. This is shown by an

increase in the use of public transport and also personal cars. This is good for business start up as it means that they can advertise jobs further afield if they do not find appropriate candidates living in the local area.

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Increase use of ICTo There has been a significant use of ICT. This is good

for business as it is easier to advertise the business and communicate with potential customers. This may then lead to reviews of businesses being published and therefore the business will grow it’s reputation

Renewable energy o Businesses that can demonstrate that their energy comes from a renewable

source will be exempt from the climate change levy – meaning that they will pay less.

Values of the communityo Ethics and values of the local community may have a different

effect on different businesses. These ethics may be:

o Carbon footprint – People are currently concerned about the impact of the carbon footprint on the environment. A business will therefore need to make sure that they try to use renewable energy and have little wastage.

o Animal welfare – This is also an issue which customers may be concerned about. Any materials or food products sold need to meet animal welfare regulations.

o Contribution of business to the community – Some people want to know the different the business is making to their community. Businesses may therefore want to invest in charity work and show employment