Environmental Factors Of Small Business

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STEEP analysis Environmental factors refer to external influences on a business. Usually, there are four factors affect businesses in different ways: social, legal, political and economic. STEEP refer to: Social, Technological, Economical, Environmental and Political. The STEEP is a tool to help you think about the issues that have an impact on the business. S: Social Ahmad should study the demographics in the target market such as age range, gender specific also; he should study the life style, social and cultural values, consumer behavior and advertising. For example, the workforce of UAE comprised mainly of expatriates, specially Indians and it could be cause of decreasing the business expenses. T: Technological the speed development in…show more content…
For example, companies which use natural resources to predict goods should dedicate a great amount of time to examining the ecological environment of country in which the business offering goods or services. P: Political Political factors include areas such as law, legal environmental, trade restriction, health, safety and political stability. For example, if a company failure to adapt to the legal and political environment, it will result too costly problems to deal with. Question 2 The benefits of small business and its role in general for the growth and development of a nation A small business is a privately owned and operated business. A small business normally has a small number of employees. Small businesses create an important share of new jobs. Other benefits appear: • Developing personal relationship. The small businesses can be well placed to build personal relationship with employees, customer and suppliers. In small business you know who you are dealing with and it is important to building strong relationship. • responding flexibly to problems and challenges, for example, Small businesses can make a quick decision on whether or not it can do what is…show more content…
Entrepreneurship is the process of starting a business or other organization. The entrepreneur is a person of very high aptitude who practices initiative by organization a venture to take benefit of an opportunity and as the decision maker, decide what and how much of a goods or services will be produced. The entrepreneur is usually a sole proprietor, the one who owns the majority of the shares in an incorporated venture. An entrepreneur supplies risk capital as a risk taker and controls and monitors the businesses activities. Entrepreneurial quality defining leaders who often have little interest in anything beyond their mission, also it defines characteristic of first class entrepreneurs and they are willing to spend the next ten to fifteen years making a historical development take place. Successful entrepreneurs are usually driven by money. But most of them will tell you that they are fueled by a passion for their product or services, by the opportunity to solve a problem and make life easier, better and
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