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National Factors That Affect A Business...

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Zac Peel-Yates

on 7 October 2013

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Transcript of National Factors That Affect A Business...

National Factors That Affect A Business
Level Of Employment
The level of employment is currently 7.7%, and this affects a business in a variety of ways, with different consequences.

Firstly, the negative effect of unemployment is that unemployed members of the public will have less money... so you may have to lower prices or introduce a 'basic' range to accommodate for them
Employment Continued...
However, there is also a positive affect with a low level of employment, there are more potential job candidates that could work for you!

Both points work in reverse as well...
E.g. Low unemployment level = more money but a smaller variety of possible workers.
Government Support
The government can 'kick start' a potentially successful business by giving them funds to help start out.

Obviously, it would be a poor decision
to do this to companies that could end up making a loss, so they will only do it if it seems profitable to them

Government Control
Government control is an aspect of the government which impacts on all businesses, rather than specific ones they choose. This involves adding policies and laws such as minimum wages, RRP, and tax, which I will go into more detail about now...
Taxation is a process in which governments influence businesses' financial decisions. This is usually by increasing or decreasing VAT (Value Added Tax) depending on how good the economy is. Poor economy, higher tax. Higher tax, businesses' lower prices
Thanks for watching!
By Corbin & Zac
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