W4. THE ENVIRONMENT OF ENTREPRENEURIAL VENTURE

• Physical Environment - is the primary layer of the environment. It is composed of the natural elements that are inherent in the earth
• Climate - The entrepreneur must study the widespread climatic conditions of the area where he/she aims to open the business to control whether it can withstand or is fit to the climatic condition in the limited area.
• Physical Resources - The entrepreneur must critically evaluate the convenience of raw materials in the area before opening a new business.
• Wildlife - The entrepreneur must guarantee that his/her business donates to the protection and not the demolition of the ecological system of the local community and our country in general.
• Societal Environment - is usually composed of social, political, cultural and economic, legal, and technological forces.
• Social Forces - are elements in society resulting from human relations that can affect the thoughts, behavior, attitude, actions, and even the beliefs and customs of the people.
• Political Forces - are various elements usually including political parties, political systems, and other related political groups that significantly affect the political stability of the country.
• Cultural Forces - refers to the combined characteristics of a group of people or ethnic groups in a specific society.
• Legal Forces - are elements and forms that are implicated in the regulation and explanation of laws and ordinances affecting the business
• Technological Forces - refer to the trends and developments in computer and information technology that have impact on business.
• Industry Environment - is the external environmental layer where the trends and changes are simply and directly handled by the business.
• Government - refers to the system or institution that handles the affairs of a particular country
• Suppliers - refers to individual persons or companies that provide the required materials, parts, or services to the business.
• Competitors - are the forces existing in the industry environment that produce, sell or render products or services which are similar to those of the business
• Employees - are the workers of the business who are highly responsible for the production of goods or delivery of services to the consumers
• Creditors - refer to banks, financial institutions, and financial intermediaries engaged in the lending of money to the borrower.
• SWOT MODEL - is the popular tool to evaluate the internal environment.
• FORCES OF COMPETITION MODEL - “Five forces of competition” Identifies and analyze forces that shape every industry and helps determine an industry’s weakness and strength.
• COMPETITIVE FORCES MATRIX - Can be used by the entrepreneur to plot when after all the competitive forces have been identified by which the entrepreneur can view the total perspective of the competition within the industry where the business operates.
• ENVIRONMENTAL SCANNING - evaluation and full study of the environment where the business works.