In the business world there are many aspects that can influence a business. It is every business goal to make the firm bigger, stronger and successful. These factors can be environmental, physical, political, economic, social, ethical, legal, demographical and technological. It is necessary that business owners pay attention to these factors that can affect their business.
The most crucial is the political factor. Business owners should not neglect this. It is the one they give more importance to. Policies set by the government should be followed. All these policies can affect how the business runs or operates. Businesses are guided by plenty of laws that they have to follow. If they fail your business can shut down and would not be able to operate leading to major loss. A business can be at risk if it does not have the proper permits issued by the government to operate. They have to adhere to all of these. Business owners understand that political factors have the capability to change results. This is one thing that businesses remember.
Political Influences on Business (External Influences on businesses)
Companies in a country, whether big or small should always be ready to compromise with the different outcomes of politics that can affect their business. Government policy change from time to time and these really affects how a business operates. They have to pay close attention to all this. The changes can be any of the following, Economic, Social or Legal.
There are certain elements that should be considered politically. One is dealing with taxes. Taxes may be different for all businesses. Some may have small taxes and others may be bigger. Other elements would include a change in interest rates. The political factor affecting a business is very unpredictable come the business environment. Because of re-elections, a change in rule or a charter change can be an external factor that can affect a business. It is in the government’s hand on how a business runs. Changes in rules and regulations can greatly impact a business. Some business owners tend to bend these rules through bribery. In order to avoid the hassles of these changes, some even go to a point to bribe the government. Corruption is very common. Business owners also find ways to protect their business during times of uncertainties politically. Many of these businesses avail political risk insurances to help manage political risk. This is something that companies find important especially for businesses operate internationally. They use this insurance to lessen being exposed to these risks. To know more about business risk and how to avoid them, watch related videos in YouTube to learn more. Download an Ad Blocking App for a better viewing experience. Learn more on: https://youtubevanced.com