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1.5.5 External influences Typeit
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Unit 155 is a revision of the units 151, 152, 153 and 154, so these questions relate to all those units.
Technology, economic and legal factors may change over time, which will have an impact on a small business.
If economic activity increases, then a business may more staff and increase its product .
If technology is introduced to a small business, this may make the staff more . The of production might decrease, so the business can charge prices. This might give it a competitive advantage over its rivals.
Technology also allows a business to with customers through social media platforms. This means it can carry out market research, gain customer feedback and its product and services to better meet changing customer needs and wants.
Small businesses may also respond to changes in external factors, and we can use the SPICED mnemonic. SPICED stands for: pound, cheaper and dearer.
If the government increases the National Minimum , then the business will have to adhere to this employment law. This will increase the costs of the business and may have a negative impact on its .