Top 10 external factors that affect business environment 

Social Factors: Every business organization has a social responsibility. It operates within the norms of society and strives to satisfy the needs and wants of society.

Economic factors: The economic factors that influence a business environment are per capita income, national income, infrastructure development, and capital formation resources mobilization.

Cultural factors: The cultural factors of a business environment should also be taken into consideration while scanning of environment and during the formulation.

Geographical Factors: Geographical location, seasonal variations, climatic. Condition and other factors considerably affect the tastes and preferences of customers.

Technological factors: Technology is considered to be one of the most important factors in any business environment.

Demographic factor:  Companies with successful products and services evaluate the demographics of their target market to ensure they meet the needs of those who benefit from their offerings.

Political and legal factors: As political officials leave office and new ones replace them, the policies they implement often affect businesses in relevant industries.

Competitive factors: Businesses can increase their market share and stay relevant to their customers by keeping track of their competitors.

Global factors: Executives have a duty to keep track of both domestic and global issues, especially if they conduct business internationally.

Ethical factors: Some companies may find it challenging to balance the personal lives of staff members with their expectations in the workplace.