Entrepreneurship Development and Communication Skills

1.1.3 Economic factors

Coming to the economic environment, we list the following factors which for our purpose, constitute the economic environment of business. We are not confining ourselves to pure economic principles such as the law of demand and supply, marginal utility and the like. There are major macro-economic factors which have considerable influence on business. Such factors are:

•  Growth strategy,
•  Economic system,
•  Economic planning,
•  Industry,
•  Agriculture,
•  Infrastructure,
•  Financial and fiscal sectors,
•  Removal or regional imbalances,
•  Price and distribution controls,
•  Economic reforms,
•  Population, and
•  Per capita and national income.