Small business environment is quit dynamic but the principle factors that affect every small business are: the legal, economic, technological, competitive, social and global environments.
Business owners should accurately be aware of the factors that affect their businesses if they want to succeed.
An entrepreneur can keep up with the changes in the small business environment by reading business publications, listening to business news and by reading the newspapers.
Not paying attention to the factors affecting businesses will likely lead to less success.
Businesses do not operate in a vacuum, but rather in a regulated framework that is put in place by various states and governments, the law making bodies put up the laws and economic policies that can create a conducive environment for people to be willing to take risks of losing money should not be too great.
The legal environment involves issues such as tax laws and rules that govern how small businesses should operate.
Checking with the local authority for the rules and regulations that might affect your small business is a good idea.
Small business owners should always aim to be law abiding business men and women.
By nature we humans have the need of making tools that make our work easier. Business today is easily transformed by technology. Computers for example have made work very easy for most small businesses.
Technology has made businesses to become more productive and efficient, thus it has become an important part of small business environment. Technology can increase the production of a business much faster as compared to humans.
It has also improved the way small businesses respond to customers and their needs.
An important aspect of small business environment is the recent change of doing business-it is the growth of e-commence (the buying and selling of goods over the internet). There are two types of e-commence transactions: business to business (B2B) and business to Consumer (B2C).
Competition is away of life in the business world.
In order for small businesses to succeed in terms of competition, products of high quality must be produced and maintained for maximum customer satisfaction.
In today's business environment, many businesses aim to have zero defect products but luck the idea of having a competitive advantage over competitors-which every small business must aim to achieve.
The concept of value supports the idea that business people must not only know their competitors but also try to constantly improve their products and processes to meet customer expectations.
Competition is an important aspect of small business environment.