Economics Controlled Assessment

This report will be based on a local newsagent in Tottenham. I have chosen this business because it is a local business which is less than a five minute walk from my house and I know the entrepreneur quite well as I use to go there every week a few years ago. The newsagent is an established business which has been open for over fifteen years. I will be using seven appendices to use as evidence to back up my conclusion to this report.

Appendix 1 is a picture of the newsagent I am researching. Appendix 2 is a picture of the entrepreneur of the newsagent. This is the entrepreneur that I have interviewed and who this report will be based on, along with his newsagent business. Appendix 3 is a copy of an unanswered questionnaire. Appendix 4 is a questionnaire with the answers the entrepreneur provided me with during our interview. Appendix 5 is a map which shows where the newsagent is and where its competitors are.

Appendix 6 is an article found on the internet which shows the most common enterprise skills found in successful entrepreneurs. Appendix 7 is a table which shows question 5 from the questionnaire in a more organised, neater and easier to analyse form. I will go into more detail about the purpose of these appendices later on in this report when I go into more detail about them. I intend to reach a conclusion to the main question of this report by using my appendices to help me by the end of this report. Newsagent Introduction Using Visual Information (Appendix 1 – 2) Picture Of Local Newsagent (Appendix 1) Picture Of Newsagent's Entrepreneur (Appendix 2)

Appendix 1 and 2 has been included to help me understand the size of the newsagent. The entrepreneur didn't allow me to take a picture of the interior of the newsagent, so I asked for a picture of him instead. I also tried to get as much interior in the background as possible whilst taking this picture. As you can see, the newsagent is quite small though the interior has been spaced out in such as way that makes it seem bigger.

This is creative thinking from the entrepreneur but unfortunately doesn't hide the fact that it is almost impossible to walk between shelves. You need to turn your body sideways before even attempting to walk between them. The newsagent is also the smallest out of all its competitors, who will be analysed about later on in this report. Questionnaire Analysis (Appendix 3 – 7) Original Questionnaire, Questions 1-6 (Appendix 3) Original Questionnaire, Questions 7-10 (Appendix 3)

My questionnaire, which is Appendix 3, with the answers shown in Appendix 4, consists of ten questions which I have personally asked to the entrepreneur of the newsagent. I created my questionnaire in an attempt to find out the most important enterprise skill the entrepreneur needs. This questionnaire and its results are vital in this report as it will play a key role in helping me decide which enterprise skill is the most important for the entrepreneur. The results from this questionnaire will heavily influence what I think the most important enterprise skill needed by the entrepreneur is. The first question is an entirely straightforward question which proves that the entrepreneur does indeed run a newsagent. Map Of Newsagent And Surrounding Competitors (Appendix 5)

The second question identifies three of the newsagent's competitors, which are all quite close to the newsagent itself. This will help me understand the reason behind the entrepreneur needing a certain enterprise skill. It will also help me understand the importance of the enterprise skill needed. The first competitor identified was the zdiller Supermarket. After visiting the zdiller Supermarket myself, I can conclude that the shop is only across the road from the newsagent and is much bigger intrnally. It makes sense that this has been identified as a very close and dangerous competitor.

The second competitor is the Emek Supermarket which is not far away from the newsagent. This shop is slightly smaller than the zdiller Supermarket but also further away. However, it sells items at a cheaper price than the newsagent. The reason for it being able to do this is probably because it can buy items in bulk due to being bigger. The final competitor identified is Somerfield. Somerfield is a two minute walk away from the newsagent.

To make it easier to see how far the businesses are from each other, I have included a map which is Appendix 5. I personally think that Somerfield is the most dangerous competitor out of all three identified. Mostly because Somerfield has lower prices than its competitors and has a much larger product range. Despite Somerfield's size, someone that isn't familiar with the area may just find the newsagent and the zdiller Supermarket. This increases the newsagent's chance of survival massively but it would just be pure luck.

The third question identifies the enterprise skills necessary to survive against the entrepreneur's powerful competitors. The skills identified were commitment and problem solving. This is a vital question as it helps me narrow down the answers to the main question of this report. Commitment being necessary makes sense in my opinion. In the newsagent's first few years of starting up, it would have made a loss to its other competitors, but commitment has kept this newsagent surviving for a good fifteen years. Problem solving skills would have been crucial at this stage too.

An example would be that the entrepreneur needed a certain amount of revenue per month in order to pay back debts, but it has a lack of customers. The entrepreneur would have to decide between lowering the prices and gaining more customers, or raising the prices and losing customers but at the same time earning more revenue from the current customers. Raising the prices will have an effect on the month after though, because the customers that left may not return to the shop. Both enterprise skills are necessary for survival, but this isn't enough to single out on enterprise skill as important yet.