The purpose and nature of businesses - AQADynamic nature of business
Entrepreneurs may choose to set up a business for a number of reasons and there are a number of business sectors that it can be in. To be successful, entrepreneurs need to have a number of characteristics.
In order to understand what makes a business dynamic, it is necessary to understand the market in which the business or enterpriseThe different skills an entrepreneur needs to possess in order to be successful. The term can also relate to a business organisation. operates. All business environments change constantly and are impacted by a number of different national and international factors.
Rikke discusses the importance of understanding and meeting customer needs
The business environment can experience the following changes:
Technological change – businesses need to keep up with rapid changes in technology. This includes advertising methods, production, e-commerceE-commerce is any transaction that takes place through the internet. and m-commerce M-commerce is any business transaction that takes place through a mobile device such as a phone or tablet..
Economic change – economic factors can have a big impact on the success of a business. These include interest rate The price at which you can borrow money, or the return on how much money you can save., inflation rateThe rise in the price of goods and services. and Gross Domestic Product (GDP)Measures the wealth or income of a country. It is the total value of goods and services produced by a country in a year..
Legal change – businesses will be affected by new government legislation Laws made by the government.. Changes to laws such as minimum wage may increase the costs of the business or affect the demand for the product as workers now have more disposable incomeMoney available for spending and saving once taxes have been deducted..
Environmental expectations – businesses have to be aware of how strongly their customers feel about environmental and other ethical issues. This will affect how they produce, package and transport their products as well as the resources they use.
