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What are the Limitations of Business?

There are lots of limitations of business which you should understand if you are starting your own business. To study these limitations is not for fearing and withdrawing your feet from business but to study these limitations is necessary for bringing new innovation for removing these limitations.

1. Limitation of Capital 

It is the limitation of business. If you have less capital, you can grow your business at less area. For example, you service demand is in the market but market's shop rent is Rs. 10,000 per month and Rs. 10,00,000 advance as security which is not under your small capacity. So, this will become your business limitation.

2. Limitation of Technology

Time to time, fashion is changing, technology is changing. Due to this, you can loss your customer if you will not do updates. This is the limitation of business. For example, people who were operating net for opening website through pc. Now, they are living pc and using mobile for opening eCommerce sites. All eCommerce sites who will not make mobile responsive sites will loss the customers.

3. Loss in Advertising 

It is only on luck whether customer will buy on the basis of advertising or not. If customer will not buy on our investment in advertising, it will big wastage of our money. So, this is also our business limitation.

4. Failure of Marketing Strategy 

Sometime, marketing strategy may fail. So, it will reduce our capital. Due to this, we may not uplift again. So, it is limitation of business.

5. Legal Limitations 

Sometime, some legal problems may be arise. For example, tax department may order of investigation against our business. If everything is OK but still it will waste our time to go to fulfill all legal procedures to prove that we are correct. 

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Objective of Business Environment

Following are main objectives of business environment:
1. Knowledge of Information 
By studying the business environment, we can know the changes of business. This information is very useful for our business. Every businessman should aware current environment of business. With this, he can think the future of his business in such environment. 
2. Basis of Decisions 
One of main objective of the study of business environment that it can provide all the information which is needed for taking good decisions. Suppose, you completed your internal business environment study. With this study, you can take decision relating to purchase, sale, salary and price because you know your competitor, you know your suppliers and you know your customers. 
3. Helpful in making of Policies 
For making good business policies, we need to know and scan business through business environment. 
4. Technological Planning 
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Limitation of Business Environment Analysis

Following are main limitation of business environment analysis:

1. Unexpected and Unanticipated Events 

We can not tell unexpected and unanticipated events in business environment analysis. Sometime, business has to face unexpected happenings. So, there will no benefit of business environment in these cases.

2. No sufficient Guarantee

Business environment analyst does not give any guarantee whether all events will happen as per estimation in business environment.

3. Uncritical Faith 

Sometime data may be incorrect. So, decisions on basis of these analysis may be risky for business.

4. To much information

Sometime too much information relating to business environment analysis will create the doubt in businessmen.

Technological Environment

Definition of Technological Environment :-

“Technological Environment means the development in the field of technology which affects business by new inventions of productions and other improvements in techniques to perform the business
 work. "