Entrepreneurs have to develop favourable business environments in order to succeed in their undertakings. Developing a favourable environment refers to the process of ensuring continuity of business activities while gaining a competitive advantage. Business environment include conditions that influence the proper functioning of an organization. These conditions include institutional, political, legal, and economic conditions. Further, business environment can be discussed in two perspectives. These include internal and external business environment. This paper seeks to discuss business environment and how the business surrounding is at large.
The success of a business entity is influenced by both internal and external factors, hence, internal and external business environment. Internal business environment are factors that directly influence business operations. These factors include human capital, physical facilities, and factors such as marketing. It is essential to note that factors that form the internal business environment can be controlled by the management. As such, these factors can be altered in order to suit the business operations. On the other hand, external business environment include the conditions that have affect businesses indirectly.
Therefore, businesses have no control over such factors. External business environment can be divided into micro and macro environment. Micro environment include customers, suppliers, sources of funds, and intermediaries. On the other hand, macro environment include the government, technological factors, legal factors, and political factors.
In conclusion, the success of any business is determined by the business environment at large. Therefore, all entrepreneurs should work towards developing and maintaining the best business environment.
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