The right kind of business to own in such an environment is a franchise business that deals with essentials that consumers cannot do without. Why a franchise? A good example of this kind of franchise is the dry cleaning business. This results in families changing the way they structure their time. This trend demonstrates yet another one of those global issues that affect business that can be solved most effectively by franchising. By making the investment into one of them the buyer eliminates the problems with higher insurance costs and poor business models.
The way a company is managed and the way members and employees of the business feel about the company, have a huge affect on business growth. The Economy is one of the greatest things that affect a business and its growth.
Communication, idea generation and marketing structures are all different for different businesses depending on certain factors. Structure affects growth in that it is how a business handles growth will determine how, where and how quickly it grows.
The tools a company has
1. The interest rates of the banks
As a business person, you should ask yourself as to how easy it’s going to be for you to borrow money from the bank to finance your business. For instance, in developing countries, commercial banks are not so much be willing to lend money to farmers because they think that they run high risk businesses.
2. Per capita income
In developing countries, most people do not have enough money to spend on their basic needs. The same advert may have a higher cost per click in a developed country than in a developing country.
3. Availability of Infrastructure
While online businesses rely heavily on a good communication system, agricultural businesses depend largely on good road networks. It’s difficult to be in business alone without other competing businesses.