Performance of UK Business (Productivity)

Introduction Productivity is a key issue in the business field. It is the amount of output that is produced for inputs used. It should therefore be maintained to the highest level possible since it is one measure of success and prosperity.Advertising We will write a custom essay sample on Performance of UK Business (Productivity) specifically for you for only $16.05 $11/page Learn More There are however some instances where it becomes hard to maintain productivity especially when there are many limiting factors or obstacles. Although productivity may not seem to be a big issue when carrying out business activities, in the long run, it is almost everything. Labour productivity is for example considered by economists as the key indicator of economic health (Haslam, Neale and Johal 2000). This piece of paper gives an argumentative discussion of the performance of the UK business with much emphasis being given to productivity and related issues for instance the productivity gap and the Policies that the UK government could introduce to increase productivity in the country. The Productivity Gap Productivity gap in this context refers to how the UK has a lower level of productivity in relation to most of the developed countries. The UK’s productivity gap is attributed to various factors all leading to some business disadvantages of the nation in relation to other countries such as the United States, Germany, and France. Some of the contributing factors include poor labour relations, lack of proper investment, trade distortions, lack of technological advancement, poor business policies, and lack of entrepreneurship among others. The poor performance of the UK in terms of productivity has been an issue of concern and has attracted debate from different individuals and groups (Buxton 1998). Policies that the UK Government Could Introduce To Increase Productivity There are various policies that could be introduced in an effort to incr ease productivity in businesses in the United Kingdom. The policies could be deduced from the problems faced, for instance, the ones mentioned above so that the policies can help handle the challenges. Some of the policies therefore include those touching on aspects like competition, privatization, and deregulation (Buxton 1998). Policies that enhance productivity such as those that facilitate foreign direct investment, European integration and trade liberalization should thus be established and emphasized as they would play a great role in increasing the country’s productivity. A macroeconomic policy is also crucial. This is because these policies will promote investment and trade through elimination of obstacles.Advertising Looking for essay on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More The government of the UK should also establish general policies that are aimed at improving the situation of the business s ector for instance those aimed at encouraging the establishment of new and innovative business ventures. This is because policies that are aimed at dealing with the entry obstacles alone may not be in a position to boost productivity in different sectors but a combination would do better. Taking a positive move towards handling the failures experienced is also advisable (Seager 2007). Conclusion Being a crucial business aspect, productivity should always be enhanced. It is evident that the UK business sector has been affected negatively by various issues, the major one being productivity gap. Some of the challenges that should be handled in an effort to deal with this ordeal include the ageing population, technological progress and climate change as well as globalization. The UK’s government could also impose some effective policies as mentioned above so as to solve the problem of productivity gap and hence increase productivity in the business sector. Reference List Buxton, T. 1998. Britain’s Economic Performance, 2nd Ed. New York, Routledge. Haslam, C., Neale, A. and Johal, S. 2000. Economics in a Business Context. New York, Cengage Learning EMEA. Seager, A. 2007. â€Å"Britain narrows productivity gap†. The Guardian. Web. This essay on Performance of UK Business (Productivity) was written and submitted by user The Fury to help you with your own studies. You are free to use it for research and reference purposes in order to write your own paper; however, you must cite it accordingly. You can donate your paper here.