Factors that affect the growth of a business: Looking at it from a different angle, we can notice different factors affecting the development of a
Factors that affect the growth of a business: Looking at it from a different angle, we can notice different factors affecting the development of a business organization but not all affect the business to the extreme. They are referred to be the minor factors. If the growth of a firm is affected, then it is directly affecting the development of the economy.
It is the an income organisation that builds up the wealth of an economy, they act as complements to each other. That is why when there is a downfall in the business status, the economy becomes poor.
The reason for the negative change in business status can be due to some factors as explained above, they take part in the firm status with a negative effect.
They can be natural or artificial, it depends on the type of factor that affects the downfall of the business status.
Business organization of 21Th century have been enlightened on how these factors work and how they react with the business, they involve in so many practices in prevention to avoid its occurrence in the business.
Any firm that is affected by one of those factors takes time to get back into normal states or function because a lot of damage will be made internally and externally which may take a while to be fixed up.
The factors that affect the growth of business negatively
The major factor that affects the development of the business are precisely listed are enlightened.
1. Abiotic factors
Abiotic factors can also be referred to as natural factor, they include climate, wind, humidity, temperatures e.t.c they occur naturally without the interference of human. This factors can be predicted and unpredicted, they take place most time without expectation.
Abiotic factor affects the business in a way that it avoids the organization event to take place successfully, they hinder the operation of the business.
Apart from causing obstacles for task performance, they destroy and damage equipment/facilities that are mainly used by the organization. With this, it causes more expenses and creates an excess loss for the business.
The loss most time affects the capital of the organization, it makes the firm to run out of money for continuous running and leads the firm to stagnant and decrease in development. These factors can’t be controlled but can be predicted by whether forecasting and other means.
An organization with a standard structure suffer less from these factors, the structure is there made strong enough to withstand the force of the factors. The most common part of abiotic factors that affect the growth of the business it named to be rainfall, wind and earthquakes.
They occur most time and damage a lot of things in the organization. As said before, this factor can be prevented but predicted, so this gives a chance to prepare ahead of what is coming.
2. Poor utility
Lack of utility like electricity, basic equipment and other necessary things affect the business badly. Without this, the operation won’t be taken and lead to a lack of effectiveness.
Productivity is required at a high rate in order to move the state of the industry forward, but this will only happen if there is the availability of useful utility.
For example, an operation is going on in the organization and suddenly there is the supply of electricity breaks. At this stage, there will be a cut in operation.
The utility is meant to be available 24/7 and maintained carefully, most of them are required by labour in order to aid them in performing their tasks. Utility most time works with labour and labour also uses the utility to carry out operations.
The most common use utility is electricity and light, they are made constant in operation. Lack of provision of these utilities will hinder the growth of the business.
3. Negative market trends
When there are change and deviation in the market trend, it automatically affects some firm that follows the actual trend. The forex market is of two different trends and they are the Up and Downtrend.
Most organization engage in forex trading to add more value to their business, but if there is a deviation in the market which is not expected, definitely there will be a loss of money.
Not all time there is a loss in forex trading, but if the trend is not studied carefully before making any decision and implementation.
Then, the market will go against the business plan. Consistent loss in forex affects the growth of the business negatively.
4. Insufficient labour
Labour is referred to as the physical effort of man in an operation. labour is emotional and the also one of the cores characteristics of an organization.
Without labour, no utilities will be used, no operation will be performed and no task will be completed. Insufficiency in labour causes a lot of stagnant in operations, there will not be an achievement in a business organization.
Labour is meant to be active and abundant, a standard organization should not be lacking good labour. Employers who are not competent with their work is referred to be a type of labour that is not effective.
Labour is mobile which means they can move from one place to another, the growth of a business depends on the amount of labour implemented to an organization.
5. Embezzlement of profit
If the profit of an organization is not managed well or it been embezzled, it will surely affect the growth of the business negatively.
Embezzlement of profit is like spending the future expenses required by an organization, profit experiences frequent turn over in a weekly routine.
The accountability of an organization matters, it records the flow of income and expenses made by the business organization.
Tampering with the accounting sector will result in the embezzlement of gains and profit in a disguised way.
Things affecting the growth of an organization are more to what listed above, but the majority of them are listed m. Considering the one listed above, they still help to some part in the business organization.