Entrepreneurship

2 Types of Business Environment

• Internal or Micro Environment

• External or Macro Environment

Internal or Micro Environment

• events or situations that occur within an environment

• easier to manage and control

External or Macro Environment

• events that take place outside the organization

• more difficult to predict and control

External Environmental Factors

• Social Factor - this can be composed of the demographics and psychographic composition of the market. Demographics is the statistical profile of target market e.g. age, gender, educational background and income bracket.

• Political/Legal Factor - this is about laws, power structures/systems, rules and regulations set within a particular country’s government. Ordinances within the locality.