Examples of the impact of changes in the political environment on business

• Government policy relating to enterprise

A more encouraging approach to enterprise enables more new businesses to set up and trade and ensures that existing businesses receive more support. Knowing that government policy favours enterprise encourages businesses to take strategic decisions that involves risk taking.

• Government policy relating to regulators 

Industry or sector regulators ensure that strategic decisions taken by businesses in the relevant area are in the public interest and in the interests of fair competition. The more effective regulators are, the more likely they are to influence decision making. 

• Government policy relating to infrastructure 

Improved infrastructure will allow business to benefit in…