Internal and External Factors that Affects Business

*Internal Factors

# Availability of finance

# Availability of staff

# Availability of time

# Experience/Training of staff

# Equipment available

# Current technology

# Quality of products

# Leadership/Quality of management

*External Factors

# Political Factors for e.g.: The government could increase tax; the government could cut
back on grants to businesses.

# Economic Factors for e.g.: Interest rates could go up, inflation may rise.

# Social Factors for e.g.: Changes in tastes and fashions may reduce sales, Changes in
life-style.

# Technological Factors for e.g.: Changes in technology will affect businesses like new
technology introduced, faster machinery.

# Environmental Factors for e.g.: Weather, friendly goods/recycling /ethical practices.

# Competition Factors for e.g.: Competitors may launch new products, Competitors may
offer special offers or lower their prices.