RUBIZMO Tools & Exercises #07 - Business Environment Tool Presentation
Channel: Rubizmo Rural Business Models
Date: 2021-05-12

This Presentation Video will guide you through the Business Environment Tool and show all possible features, finishing with an exercise. 

For any successful business the external factors of the business environment are critical. They can facilitate or hinder both business activities and performance. 

As understood by Rubizmo the business environment consists of seven subarenas.

Each entrepreneur has to follow specific rules, regulations and policies that are designed by public bodies, associations and networks. “Institutional Development” regulates decision-making procedures, limits and requirements for actions, as well as the distribution of costs and benefits between enterprises and the society.

Innovative or emerging businesses that require new technologies or know-how to develop new products and services highly depend on the subarena “Technology and knowledge”. This covers the generation and distribution of knowledge including research and the development of technical and non-technical innovations, which add value to their products and services. 

“Resources and Infrastructure” are especially critical for rural businesses. The availability and access to facilities, communication and transport infrastructure attracts businesses, skilled workforce and residents. This in turn promotes business activities in rural areas. 

Start-Ups and developing or growing businesses rely heavily on available “Funding” and access to financial resources. The performance of this subarena depends on access to information on funding sources, time and cost involved in the application process as well as diversity of financing sources.

To keep clients satisfied and attract new customers a business owner should always understand “Consumer value and need”. This includes their knowledge, perception, attitudes and expectations towards the products and services provided. Actions like public opinion campaigns or general trends in society can directly and indirectly influence consumer decisions driving future demand, particularly of innovative products and services. 

The business competitors and other market players form the “Market Structure”. This subarena depends on the status of the market – whether it is emerging, growing or reaching maturity.  

Each business needs capacity building to innovate or improve their products and services to enhance competitiveness. This subarena describes the availability, frequency and quality of “Training and Education” for businesses and other actors at different levels of the business environment. 

Finally the performance of these seven subarenas of the rural business environment rely on a clear and plausible overall strategic direction and well-aligned stakeholder strategy; a clear understanding of the key strategic processes and agreement on necessary steps to be taken; Appropriate operational management and governance structures; a clear understanding of the value of collaboration and appropriate cooperation opportunities  and a focus on the development and consolidation of learning and innovation capacity.