FACTORS INFLUENCING BUSINESS LOCATION

• COST: (of premises)

  • Usually a business' LARGEST one-off costs (if bought OUTRIGHT)
  • Could be second largest after WAGES (if premises is RENTED)
  • Rent- more expensive in the city CENTRE
• WHAT IS A GOVERNMENTAL GRANT?

  • Money given to the BUSINESS that doesn't have to be PAID back
  • Must be used for a SPECIFIC purpose e.g. reducing UNEMPLOYMENT in an area
• PROXIMITY OF THE MARKET:

  • How CLOSE the BUSINESS is to its CUSTOMERS
  • Example: COSTA coffee near OFFICES
• PROXIMITY TO COMPETITORS:

  • Business will choose to LOCATE in a WELL-KNOWN area
  • Example: Golden MILE
• PROXIMITY TO LABOUR:

  • Business may want a SPECIFIC type of WORKERS, and choose to locate near to these PEOPLE
  • Example: HSBC- head offices in LONDON
• PROXIMITY TO MATERIALS:

  • Business may want to be close to the RAW materials needed to MAKE the products
  • Example: Walkers factory near a POTATO farm