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Business Environment
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20 Examples of a Business Environment

A business environment is a set of external and internal conditions in which a business operates. The following are illustrative examples.

Economic Environment

An economic environment including the interest rates, credit conditions, growth rate, debt levels and price stability of an economy.

Business Cycle

The state of your industry. For example, an industry that is investing in capital and expanding supply versus an industry that is divesting and reducing supply.


The confidence of businesses and consumers. For example, an environment where customers are optimistic about the future such that they are taking out loans, reducing savings and spending.


The competition and their competitive advantages. For example, a small firm entering a market dominated by a large firm with high brand recognition, a large number of loyal customers and a good reputation.

Political Environment

The political environment including the stability of a government and society.

Economic Security

The resilience of the economies in which you operate. For example, a nation that has poor IT infrastructure that is vulnerable to information security risks.


The cultures in which you operate including national cultures, communities, business culture and consumer culture.


The values of the societies in which you operate. For example, a society that demands that firms not damage the environment.


Customers including demand levels, customer needs, preferences and perceptions.


The characteristics of current and future populations. For example, a fashion firm that enters a market with a large number of teenagers and young adults.

Regulations & Taxation

The burdens placed on a business by governments including taxation, administrative burden and regulations.


Access to foreign markets and competition from abroad.


Access to resources. For example, a trade war that threatens to cut off a critical supply.

Productivity & Efficiency

The output you get for each unit of input. Productivity and efficiency rates can differ greatly from one country to the next based on factors such as working culture, infrastructure and access to education.


The characteristics of your markets. For example, a product category that is dominated by a single ecommerce company.


Your network of partners including factors such as partner performance or competition for partnerships. For example, a supply shortage that makes it difficult to secure critical parts.


Changes to business models, technology, values, customer needs, products and competitive capabilities. For example, an energy company that has its business model challenged by a cleaner, less expensive form of energy.


Uncertainty about change. For example, the risk your competition will release a product that is an order of magnitude better than yours.


Your impact on nature and communities. For example, a hotel that owns land that is critical to an endangered species.

Internal Environment

The term business environment is occasionally extended to include the internal environment of a firm such as its strategy, operations and corporate culture.
Overview: Business Environment
A set of external and internal conditions in which a business operates.
Related Concepts

Business Plans

This is the complete list of articles we have written about business plans.
Brand Strategy
Business Assumptions
Business Concept
Business Environment
Business Model
Business Name
Business Plans
Business Risks
Capital Structure
Competitive Advantage
Competitive Disadvantage
Cost Structure
Economic Environment
Family Business
Financial Risk
Innovation Risk
Management Plan
Market Analysis
Market Conditions
Market Environment
Market Research
Market Risk
Marketing Plan
Mission Statement
Pricing Strategy
Promotion Strategy
Return On Investment
Revenue Model
Revenue Structure
Risk Evaluation
Risk Treatments
Sales Strategy
SWOT Analysis
Target Market
Test Marketing
Time To Market
Time To Volume
Vision Statement
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Business Plans

A list of things to include in a business plan.

Business Concept Examples

An overview of business concepts with complete examples.

Cost Structure

Detailed examples of how to map out the cost structure of a business.

Revenue Structure

A definition of revenue structure with detailed examples.

Revenue Stream

A definition of revenue stream with examples.

Economic Environment

The definition of economic environment with examples.

Revenue Goals

Common types of revenue goals with examples.

Marketing Plan

An overview of marketing plans with a complete template and example.

Operations Plan

An overview of operations plans with complete examples.

Underpants Gnomes

The definition of underpants gnomes with examples.

Business Models

A list of common business models.

Creative Services

The definition of creative services with examples.

Business Value

The definition of business value with examples.


An overview of economic scale with examples.

Consumer To Consumer

The definition of consumer to consumer with examples.

Service Economy

The definition of service economy with examples.


The definition of recommerce with examples.

Service Industry

The definition of service industry with examples.

Gig Economy

A complete overview of the gig economy with examples.

Club Goods

The definition of club goods with examples.
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