Political And Technological Changes example essay topic

It is known that different factors should be taken into consideration while start a new business project. Your success will depend on your fortune, hard work. But you will not reach any success without business knowledge. Starting up a new business, one should make an environmental analysis. It includes political, legal, economic, socio-cultural and technological aspects.

It is a type of external business environment. Usually for short it is called PEST. All components of the analysis interplay with each other and impact each other. Political factors consist of laws, political change in the government and even environmental policy. It is evident that any political or legislative changes affect business greatly. They could impact product specification, information access and employment terms.

Obviously, political life of the country and its changes influence greatly some changes in the economy or in social and cultural life. For example lets take taxation. Politicians fix tax rates, but for making tax decisions the state of the economy should be taken into consideration. Technological changes also have a major impact on business, as well as affect political and economic fields. The best example is the Internet innovation. Nowadays consumers and businesses can get and purchase products using eBay system.

It helps to make cross-border purchases and gives an opportunity to small businesses to be involved in a global market. By the way new forms of contacting in business could help to ignore climatic conditions. It is evident that climate changes could play a dramatic role for business. And during the last years it had been proved several times. Climate changes led to great losses. Many aircraft firms, fuel firms and tour companies incurred losses.

Ultimately all PEST factors are depend on the sociocultural factors. These factors are the basis of any society. They affect people's choices. You should take into account demographic changes, lifestyle changes and attitudes to health etc. Sociocultural factors include societal beliefs, values and attitudes. And these factors cannot be taken separately, they are closely connected with political and technological changes.

If you have decided to start your own business and have made an environmental analysis it would be useful to know about ideas for business startups. You can get them from various sources. A lot of small firms have to choose different sources of capital. These sources are your own savings, loans from family and friends, and business loans.

In general there can be pointed out 5 main sources of startup funding. A lot of entrepreneurs get their startup funding from their friends and family. But there are some advantages and disadvantages in this system of loaning. The advantage is that it is easy to loan money from friends and family, because you know them well. But there are three disadvantages in the system. First of all you have to mix together your business and personal life.

It can interfere your work. Then your relatives and friends cannot be angels or venture firms; and they cannot be accredited like investors. In further it may lead to conflicts and complicate your relationships. There is a proverb that the money borrowed to your friends or relatives is the spent money. It means that you have no any obligations except moral; and often you cannot return your money back..