Critically explore the risks, challenges and key issues in relation to Essay - 1

Critically explore the risks, challenges and key issues in relation to starting up a new restaurant in Cardiff Bay in light of the current economic climate in the UK 01312 - Essay Example Resultantly, UK is considered as fruitful economy for businesses due its supporting business environment. The country is also attracting FDI for numerous sectors including food and beverages (Institute of Foreign Economy, NDRC, 2014). Also, According to PWC (2015), Europe including UK attracted around 22 million more tourists in 2014 than 2013. Cardiff Bay, the mining valley holds the status of world’ first industrialized city (Cardiff Caerdydd, N.d) and 10th largest UK city but remained underprivileged for centuries due to ignorance by authorities. With this scenario at affect, role of SME’s increase massively in Cardiff Bay as the economy is then dependent on small and medium enterprises. The last two decades witnessed the adventurous growth events and developments in the Cardiff Bay region. As reported, from 1000 registered buildings 547 are of food businesses including bar, cafà © and restaurants in Cardiff Bay (Ruddick, 2012). Hence, role of hospitality industry is wide in SME in Cardiff Bay region. Hence, with these factors at affect the paper reviews the challenges and issues that starting a new venture of restaurant in Cardiff Bay will be faced with. Honig and Samuelsson, (2011) empirically researched the effectiveness of planning and discussed the factors and viability of planning to enter in a business. Different factors in Cardiff Bay contribute in the importance of business planning. The potential population growth and changing lifestyle are promising measures for services business industry in the region (Cardiff Caerdydd, N.d). Cardiff Bay attracts around 18 million visitors a year till 2012. Though, the region still needs huge reforms but critics have positive anticipations. The lack in connectivity, infrastructure and funding measures, increasing unemployment rates and strong ethnic values that cannot be easily changed all also factors that must be considered before developing business