Economic
Economic factors include interest rates set by the Bank of England
An economy is made up of the money, goods and services that are produced and used by a country.
If an economy is doing well, people will be more likely to find jobs and there will be a high demand for goods and services.
If an economy is doing badly there will be high unemployment and people will not have as much money to spend on goods and services.
Changes in Interest is the annual charge for borrowing money. It is usually expressed as a percentage of the total borrowed. and The price of one country鈥檚 currency compared to another country鈥檚 currency are other economic factors that can affect a small business.
Economic factors include interest rates set by the Bank of England
Economic factors
| Influence | Impact | Action |
| The economy is doing well (this is known as a boom) | Sales will increase | Increase prices or launch new products |
| The economy is doing badly (this is known as a recession) | Sales will decrease | Lower prices or introduce special promotions to attract customers |
| Increase in interest rates | It costs more to borrow money | Pay back loans quickly |
| Influence | The economy is doing well (this is known as a boom) |
|---|---|
| Impact | Sales will increase |
| Action | Increase prices or launch new products |
| Influence | The economy is doing badly (this is known as a recession) |
|---|---|
| Impact | Sales will decrease |
| Action | Lower prices or introduce special promotions to attract customers |
| Influence | Increase in interest rates |
|---|---|
| Impact | It costs more to borrow money |
| Action | Pay back loans quickly |