A business is an economic activity concerned with the production, distribution, and exchange of goods and services with one major objective of making a profit while satisfying the desires of human beings. Businesses play a vital role in our day-to-day lives. They are responsible for the growth and development of nations and for uplifting the living standards of people. Other than offering employment opportunities, businesses play a major role in the development of economies, utilization of natural resources, fulfillment of human wants, increase in revenue of governments, and fostering international relations among others.  Businesses come in many forms, it can be a corner shop selling day-to-day necessities or major businesses such as Nike that operate internationally. 
Through offering jobs, businesses strengthen the economic health of communities in which they operate because, with the wages they earn, they are able to buy properties and also make investments. However, considering the fact that businesses operate in a dynamic environment, there are a number of factors that influence them. These factors come in the form of external forces eg economic factors, ethical factors, political factors, demographics, social factors, and competitive factors. External factors are elements from outside the company that have the power to affect business performance. 
They also come in the form of Internal factors, that have the potential to affect a business organization including innovation, financial and operational factors along with strategic and employee risks. This essay discusses external and internal factors and their influence on businesses. 
 

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