Political Environment Flashcards
What is the political environment?
The political environment comprises actions taken by local, national, or international authorities that affect the activities of businesses.
What areas of government policy can shape the political environment?
- encouraging enterprise
- the regulation of markets
- the country’s infrastructure
- issues relating to the environment
- international trade
Enterprise key term
Enterprise is the skill needed to make a new idea work
Innovation key terms
Innovation is the successful exploitation of new ideas
National schemes of financial support for enterprise overseen by the British Business Bank include:
- The New Enterprise Allowance
- Start-up loans
- Enterprise Finance Guarantee (EFG)
What is the new enterprise allowance?
Available to the long-term unemployed who want to start their own business.
It is in two parts:
- a weekly allowance totalling £1274 over 26 weeks
- access to a loan of up to £2500
What are start-up loans?
Scheme provides loans to businesses of up to £25,000 with the average being £7,200.
Fixed interest rate of 6 per cent and repayment can be made over any period between one and five years.
What is the enterprise finance guarantee (EFG)?
EFG is a loan guarantee scheme
Allows banks and other lenders to offer small businesses, which lack security or a proven track record, a normal commercial loan.
Lenders can use EFG to help businesses arrange loans and overdrafts.
Loans can be guaranteed from £1,000 to £1.2m.
Regulation key term
Regulation is the enforcement of principles or rules that result from the passing of a law or series of laws.
Financial services key term
Financial services are any products which are financial in nature and include those supplied by banks, insurance companies and financial advisors.
Monopoly key term
Monopoly exists when there is a single supplier within a market
