External factors that affect a business.

[Ephy]

These are things that affect the business from outside and also they can contribute to the failure or success to a business. Any business can only respond to then but no business can avoid them. These factors can contribute to opportunities in a a business and can also lead or be threats to the business. These factors are:

1. Social cultural environment - these social factors include religion, education and health and cultural factors include social values, customs, beliefs, lifestyle and desires of a particular society. Different people have different beliefs for example you can only self pork meat for a few members in a society excluding the Muslims because it's against their religious beliefs.
2. Political factors - these refers to the government laws, regulations and procedures to be followed by a business. Here high taxes of good can affect the business negatively.
3. Competitive environment - this refers to other businesses that surrounds you and do sell the similar products as yours this make competition to be tuff hence might lead to collapsing of the business due to lack of customers.
4. Economic factors - these are factors that determine people's ability to buy products and services. The purchasing power depends on how much people earn from their jobs or employment, prices of goods and services. For example if a consumers salary increases then the budget also increases.

 

[Kingsley]

Indeed there somany external factors affecting business organizations and these factors sometimes determines what transpires in the internal control systems. They play alot of roles in the management decision making. First I will like to look competition from other similar organizations, somany business organizations are faced with stiff and unhealthy competition and sometimes they will have to go the extra mile to look for ways to label the product or services of their competitors as been very bad. They look out for way to black mail the management or staffs of their competitors in other to persuade consumers not to patronize from their competitors. All in a bid to win the attention of the consumers and gain their patronage, thereby increasing sales and overall profit.

Again the government policies affects a business entity positively or adversely, But here it is affecting most of them adversely as many of the policies does not seem to favour businessman an women and the policies has even chased out foreign investors and somany companies has liquidated, windup and many are still folding up. Infact many has lost the means of livelihood due to the bad government policies that is killing home grown industries and lack of support from the government. They promote foriegn goods and kill the ability of exporters to export by weakening foreign exchange for exporters.

 

[Chibson]

Most of these factors really affects the performance of businesses in most cases. In a country where the government has some policies which may be favorable to businesses, then you would observe that every business in a particular country will definitely do well provided the business people have proper knowledge and understanding of how businesses works. But in a country where by there is no favorable laws for businesses then you would also observe that no matter how good you are in business, many businesses may actually not succeed in a particular country. there are also a lot of environmental factors that affect businesses like you have stated. In an environment whereby running a business is not good then there's no point to situate your business there because it will definitely not do well. Anybody that wants to start a new business should make proper research by asking questions about her business is trials in particular country or environment.
I always advise people that wants to venture into new businesses to look for a monopolistic environment because they will do well and succeed more, than in competitive environment. Competition usually kills New businesses and it is one of the major factors anyone I want to venture into a business must consider.

 

[Sotherefore]

The only factors externally that might have a serious influence in businesses is war and when this happens a lot of business might find it very difficult because over here most of the products that are being used for the production are being imported from other country and when there is a war importers are not able to import products , there is likely to be shortage of products available , this obviously might affect a business negatively .

Yes another most important thing that can also affect a business is the economy and if the economy of a articular country is not going well the business in such an economy is likely to feel the consequences that is why every countries of the world are trying in one way or the other to improve the economy of their country but here instead of the government here to improve the economy of our country they are securing properties outside the country that they will eventually travel out to live in after retirement.

There Are numerous factors that can also affect our business externally and another cases is being sanctioned by the United States , this can affect the productivity of a country negatively .

 

[Abigael]

You have mentioned very good points there for sure. Those are the external factors that usually affect businesses. They could lead it to collapse or to perform to it's best. Therefore, it is the responsibility of a business owner to identify these factors so as to know how to operate around it.

For example the cultural factors like that of Muslims not taking pork meat. A business person who wants to sell meat should know that it is best not to sell pork in an area filled with Muslims. Also, if they choose to sell meat eaten by Muslims then they should check on the regulations needed. For example, I understand that Muslims only eat meat that has undergone a certain type of slaughter process.

As for the political effects like government laws, a business person needs to understand business regulations very well. Especially those that concern licensing and certification of the business. They should also know the taxes they need to pay and how to do so.

 

[Good-Guy]

There are various kinds of external factors that could damage or improve the business. I would say that war is also one of the biggest factor. Whenever two countries fight, the economy of those two countries get affected badly. This leads to many investors backing off from those countries. This is why people often say that war is a really bad thing. It causes problems and it is never a solution to any kind of problem. Another major factors that could affect the business is the inflation. whenever, the inflation hits any country, the firms and businesses of that country suffer a lot.

This is because when people are not able to buy expensive things, then this would also affect the businesses that manufacture and sell those products. The third major factor that could indirectly affect the businesses in a country is the overall debt of that country. This is because when the debt increases, inflation also increases badly. The fourth major factor that could seriously affect any business is the situation of law and order of the country. When the law and order gets damaged, the business in that country gets damaged in a really serious manner. These are some of the big major external factors.

 

[Jasz]

Little do most people know that businesses can be affected by so many external factors.
There are many factors that affect our businesses. Most people consider characteristics such as adaptability, determination, and leadership to be key traits of successful entrepreneurs. But there is much more to building a successful business than simply having these characteristics.

A good entrepreneur must also have an idea for a business that will be profitable and sustainable. They must have the ability to turn that idea into a reality by finding funding and other resources. And they must be able to lead others in achieving the goals of their organization.


There are many factors that influence entrepreneurship. These include:

1. Opportunity recognition

2. Perceived control over the situation

3. Self-efficacy

4. Social capital

5. Innovation

6. Personal Traits of the Entrepreneur

7. Family Environment

8.The Role of Social Groups

9. Cultural differences in how business is conducted
10. Government Policy

11. Geographic location

13. Language barriers

14. Economic Conditions