Business, infrastructure, technology and government support聽
The type of business
The type of business will influence its choice of location. Retail companies generally want to be located as close to their competitors and customers as possible. This usually means being located in busy areas and around other retail outlets. Manufacturing companies generally prefer locations with cheaper rent, rather than being close to their customers.
The importance of infrastructure
Infrastructure refers to the facilities that support everyday economic activities, (for example roads, phone lines and gas pipes. An efficient transport network enables staff to get to work easily. It also allows supplies to be brought in from far afield and permits finished products to be moved to market cheaply and quickly.
Technology
Some businesses rely on good communications systems such as mobile phone networks and the internet. This allows some businesses to work remotely with employees such as working from home or working globally.
Government support
The government can encourage businesses to locate in a certain area to improve the economy in that area, for example through the creation of job opportunities. The government can offer subsidies, lower taxes, investment in the infrastructure of the area such as road networks or offer advice and guidance to the business.