What Factors Determine the Business Climate?
The business climate is a measure of how various factors aid or harm the chances of business as a whole thriving in a particular region. It is based on systemic factors such as regulations and government policies, not on actual business performance or variable factors such as whether or not there is a recession happening. Assessments of the business climate are based solely on how good the situation is for businesses, regardless of how that affects society as a whole. One of the factors which will usually be mentioned in any discussion of the business climate is taxation. It is generally believed that lower corporate taxes are more favorable to business overall. This is because it encourages people to start businesses, leaves more profits which can be reinvested in a business, and may attract businesses from overseas.
