There are numerous factors that are usually responsible for the choice of business people. These factors can be known as:
1. Viability and profitability. A viable and profitable business venture piques the interest of operators. The moment a business venture shows profit potential, people will have the mind to invest in it.
2. Law of the land. What the law of any corporation defines as the scope of the business helps determine the choice of business. For example, the economic phenomenon adopted by any country invariably becomes a factor in the business choice of its citizens. Many times, the law of the land makes the operations of a particular business more lucrative than others. Situations like this make it possible for businessmen to prefer the headquarters of this type of business.
3. Techniques: the techniques that one has greatly influence the choice of the business to which one is dedicated.
4. Capital Requirement: The amount of capital required for the establishment and operation of any business is also a determining factor for its acceptance. Many people would have gone into manufacturing plastic if it weren’t for the cost.
5. Availability of resources. The availability of resources, in terms of labor, raw materials, finances, machines and equipment, dictates the choice of business. There have been cases where entrepreneurs were unable to enter a particular business of their interest due to a lack of the resources mentioned above.
6. Natural environment. The endowment of resources in a given geographic area helps shape the type of business in which most people are involved. the people living in the coastal areas are generally engaged in fish farming while the people living in the desert most of the time are engaged in cattle raising etc.
