Question

NO HANDWRITTEN ANSWERS PLEASE

Identify and explain five of the seven criteria a small business owner should consider when selecting the state in which to locate her business.

Answer 1

A small business owner should have to consider following factors before selecting a particular location for his/her business:

1 Capital availability: The business man first of all see whether location is surrounded by the banks and finance companies, so that the capital availability would be easy.

2 Control : The business man has to ensure the government of the location where the business has to be established is stable and have good social and business development plans.

3 Cost Structure : The business man has to analysis the cost structure of the location which will be selected. The inflation prevailing in the locality and spending and buying habits of the people of the location.

4 Tax Structure : The tax incidence that is the business of the location is facing and whether tax holidays are being provided to establish the business in the initial years of business.

5 Expansion and future needs : The business man look at the future growth of the business. The location is well connected with the outside world so that export propositions could be looked in the future.

Thus, a business man do evaluate the above factors alongwith the legal structure of the location and availability of resources including labor.

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