Political Business Environment

369 Words2 Pages
It includes political conditions such as general stability & peace in the country & government attitude towards business. -Political stability builds up confidence among business people to invest in the long term projects for the growth of the economy. -The attitudes of government officials towards business may have either positive or negative impact on business. For e.g. After opening up of our economy in 1991, foreign companies found it difficult to invest in our country. The political environment is a key component of the business environment that dictates greatly on the success of your home business. What happens in the politics of your country as well as that of other countries influences a lot your home business. Usually, the term political environment is used to refer to the nature of the political situation in the country where you are doing business or where you intend to do business. How aware are you of the political aspects that affect your home business? If you haven't been paying any attention to those political aspects that have an effect on your business, it's therefore important for you to understand the political environment in which you are operating because it can present political risks to your business. For instance, your business is subject to political risks if a war erupts in any country where you do business. Likewise, changes in government policies may either affect you positively or negatively. The prevailing political environment in any country directly affects the economic environment or performance. As a home business owner, you need to keep yourself aware of the political climate in which you operate. Political changes affect greatly small business owners and it's quite important for them to know whether the changes in the politics and government policies are supportive or unfavorable to their businesses. This awareness enables

More about Political Business Environment

Open Document