Arthur M. Weimer | Business Environment : Best Meaning, Definition ,Top 5 Features

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Companies that create a positive business environment are winning in the marketplace. These companies make it easier for employees to do their job by eliminating distractions and focusing them on value creation.
The business environment is the Combination of factors and influences which affects a business operation. Most important are those elements that are external to the organization and usually include economic, social and political dimensions as well as technological advancements.

Business Environment ( Definition )

“It encompasses the climate or set of conditions, economic, social, political or institutional in which business operations are conducted.” 

Features of Business Environment  

External forces:

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This includes all external forces, institutions, factors outside the business enterprise that have a direct influence on the business operation. They are suppliers, investors, customers.
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General forces:

These forces indirectly affect business activities. Social, political, technological, and legal conditions affect the business environment indirectly.


Means constantly changing. The external and internal environments are flexible, which is why continuous scanning is essential to keep a business running smoothly.


It is difficult to know the impact of the external environment on business organizations and enterprises. Sometimes the change is small, but the effect is significant. For example, government policy changes the tax rate to 4%, which can greatly affect a company’s earnings.


Predicting changes in the environment is difficult for business people because we know that the environment is changing very rapidly, for example fashion industry etc.
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