What are external influences?

There are many factors that can affect how successful a business will be. External factors are the factors that are outwith the control of a business. Even though a business has no control over external influences, these influences can have a large impact on the business. These factors can be grouped into the following areas:

  • political
  • economic
  • social
  • technological
  • environmental
  • competitive

A good way to remember the external factors is by using the acronym PESTEC.