7b Analysing the external environment: political and legal change Flashcards
What does the political environment comprise of?
Comprises actions taken by local, national or international authorities that affect the activities of businesses.
A number of areas of government policy may be considered to shape the political environment including what?
Encouraging enterprise.
The regulation of markets.
The country’s infrastructure.
Issues relating to the environment.
International trade.
What type of environment does a government seek to establish & what does this entail?
An enterprise friendly business environment!
An environment that will encourage people & organisations to develop their ideas as well as to establish & expand their business.
What is an enterprise friendly business environment?
An environment which will encourage people & organisations to develop their ideas as well as to establish & expand their businesses.
When can an employee be dismissed fairly?
When a job no longer exists- redundancy.
Gross misconduct.
Failing to carry out duties in a satisfactory manner.
Ending of a contract.
What do the environmental legislations do?
The government imposes fines on firms that breach legislation- relating to the protecion of the environment.
What financial support do Government programmes provide to help small businesses gain access to finance & what do they do?
The New Enterprise Allowance- Available to long term unemployed who want to start their own business, has 2 parts, a grant & 5 year loan.
Start up loans- Scheme provides loans to businesses up to £25,000, fixed interest rate of 6% & repayment can be made over any period of 1-5 years.
Enterprise Finance Guarantee (EFG)- A loan guarantee scheme, allows banks and other lenders to offer small businesses a normal commercial loan as they lack the security needed
What are the different programmes the government has set up to help businesses with financial support?
The New Enterprise Allowance.
Start-up loans.
Enterprise Finance Guarantee (EFG)
How does the government support business enterprises?
- Reducing the number of regulations that constrain business activity.
- BIS- working with HMRC to offer support to new & small businesses by reducing the tax they pay on any profits & the cost of employing people.
- Supporting innovation- combined budget over £6 million.
- Range of new schemes to develop new products & processes.
- Recruits young business owners to voluteer as enterprise champions & talk to young people about estbalishing & running own enterprises.
- Works directly with schools & colleges to encourage the use of schemes.
Non-financial support
What schemes do the government offer support through?
‘Business is great scheme’.
Have the Department for Business, Innovation and Skills (BIS) asthe major department concerned with developing & providing enterprise support.
They also have a ‘growth voucher’ programme.
What does the governments ‘growth voucher’ programme provide strategic advice on?
Finance & cash flow.
Recruiting & developing staff.
Improving leadership & management skills.
Marketing, attracting & keeping customers.
Making the most of digital technology.
What is one of the EUs main objectives?
Creating a business friendly environment for existing small & medium sized enterprises as well as potential entrepreneurs.
What is the impact of the EUs policies?
- Encourage enterprise & innovation in smaller organisations but can help all.
- Influences decisions to start up- or expand a business.
- Functional decision making.
What is regulation?
The enforcement of principles or rules that result from the passing of a law or series of laws.
What do regulators do?
They are there to support those they regulate to comply with the rules in a variety of different business activities, its an attempt to protect the consumer.
