Economic Factors
The market functions and support system for an enterprise are all affected by the economy of the nation. If the economy is buoyant and moving well, most companies thrive, new firms are opened, unemployment is not a concern and there is a general sense of well being in the business community. So it is that the entrepreneur needs a certain awareness of economic conditions sensitivity in starting or growing the new venture. See Figure 11.2
For the most part governments have a role to play in encouraging both stability and a positive economic environment. It is government responsibility to anticipate economic change and attempt to modulate large fluctuations. However, the fact is that economic activity is more a sociological consequence than something that can be redirected through mechanical adjustments. On this basis it is prudent that governments exhibit care and avoid heroic impulses to something other than their natural consequences.
Figure 11.2 Economic Factors