Business Environment: Meaning, Categories and Features/Nature.

In this article we will discuss about Business Environment: Meaning, Categories, and Features/Nature.


Business Environment means all those factors which are affecting business whether directly or indirectly. Business environment includes all those factors, forces and institutions which help business organization to achieve their goals.

Category of Business Environment

The business environment consists of two categories are:

  1. Economic Environment: It consists of all those factors which are differently affect business environment like Fiscal Policy, Industrial Policy, Monetary Policy, etc.
  2. Non-Economic Environment: It consists of all those factors which are indirectly affect business environment like Social, Legal, Political, Technical, and Cultural Environment.

Features/Nature of Business Environment

  1. External forces: It includes all those factors, intuitions and forces which are directly affect business environment.
  2. Specific or General Forces: It includes all those specific Forces which are affecting business indirectly are customer, investor, social, legal, Technical, Political, etc.
  3. Complex: Business Environment is very complex in nature but it very difficult to understand the impact of business environment on company. It is easy to understand but difficult to know how it changes business decisions.
  4. Dynamic: Business Environment is dynamic in nature because it is flexible in nature and it affects business directly or indirectly. Environment never remains constant or static for a longer period of time. The government may change certain policies; there may be changes in consumer tastes, preferences etc. changes in technology also affect the business.
  5. Inter-relation: All the forces and factors which are directly are indirectly affects business environment are inter related to each other.
  6. Relativity: Business Environment is relative in nature because its impact on different companies may different. It is related to the local conditions and that’s why the business environment happens to be different in different countries and different even in the same country at different places.

So we will discussed In this article we will discuss about Business Environment: Meaning, Categories, and Features/Nature. For any query comment below.

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