17 Social Factors Effecting Business in Indonesia

Business is one of the economic aspects that can affect the social and cultural circumstances of a country. Business is growing rapidly certainly not only stand by itself but driven with various aspects.

Aspects are developments and advancements that can make a business fast-paced, even able to create extensive jobs. So with the business, a lot of things are generated positively.

However, not all good aspects can support the development of a business, let alone the business is called a big business and has a great advantage. Indonesia itself has a variety of business forms, ranging from business products to the service business.

In the development of existing businesses in this country, certainly not all experienced good and smooth. There are several factors that affect the business in Indonesia, such as the example below :

1. Cultural Effects

Culture is a factor in influencing business development in Indonesia. Different cultures and different cultural customs have their own impact. A business if done without the prevailing culture is very dangerous, for example in the liquor business, in Indonesia itself, alcoholic drinks have their own rules and should not be arbitrary. Read more about Major Bussiness Sector in Indonesia

2. Politic Effects

In a country, with unstable political conditions, it affects business people who will be afraid to experience it. Secure political conditions can make the business go well and smoothly. Examples: countries with poor political conditions make the country bankrupt and unsafe state conditions.

3. Economy Effects

Factors affecting other business is economy. If economic growth slows, the business will weaken. Because business buyers will choose not to buy goods with difficult economic conditions. And conversely, if the country’s economy improves, then the running business can easily develop and run smoothly. Example: the price of basic foods that continue to rise causes buyers to replace with other goods. Read more about Importance of Agriculture in Indonesia

4. Social Effects

Factors of social life can certainly have an impact on business progress. For some middle social circles to buy products at high prices is certainly not necessarily needed. In contrast, to the middle to upper social class with the ability to buy products at high prices is common.

Therefore, social life in a different country, between the rich and the poor is very different. Example: a lifestyle in meeting the needs of the goods of middle to lower and above must be different price and quality.

5. Technology Effects

Technology is very influential in a business, either business in a simple to modern business. In this case, the technology supports the ease of business, in addition to the development of advanced times, of course, the technology is also growing. If the effort is not matched by adequate technology, the chances of the business are slow. Example: digital world technology in online shopping business. Read more about Business Rules in Indonesia You Must Know

6. Location

If an entrepreneur wants to build a business, it must think about how to start with a good, cheap and secure location. Do not let the selected location be a business barrier to bankruptcy even loss. A choice of location that can make the business grow and the working atmosphere is supportive. Examples: traditional markets and modern markets, which are more profitable and strategies.

7. Security Sistem

Security is an important factor in developing a business if in certain areas the business established in the land or building in dispute is of course disadvantageous. Environmental safety is also important, do not let the environment around the business endanger and threaten. Examples of industry and market-specific areas that are governed by the government.

8. Climate Effects

The climate becomes a business factor that is run. A climate that is too extreme can make a business decline, if it is left alone it certainly has an impact on bankruptcy. Adjust the climate with the business to be established, select areas with a temperate climate for the business to run well. Example: it is impossible to open a business in the Antarctic continent.

9. Education Effects

Education becomes a factor that affects the business, if the selected business is not supported by the basis of good education then the impact of the business will be half. In this case, the business is less well developed, at least through the institution of courses or seminars to develop the business potential to be advanced. Read more about  Moral Education in Indonesia

So formal and non-formal education is important so that in decisions and policies are taken in accordance with the knowledge and the results will be. For example, the field of photography efforts at least participates in seminars or schools with the same department.

10. Tax

High taxes certainly make the entrepreneurs think to start a business, let alone established businesses have a type of product of great value tax. There are also many companies who stumble over tax evasion issues, so inevitably have to pay a large fine. If the business is not stable enough, it can influence profit. Examples of luxury car business taxes are quite high. Read more about Types of Tax in Indonesia

11. Business License

To make a large business would require permission from the local government. This is certainly very difficult in the process, not to mention the cost and time that must be processed with the old. Not to mention the need for surveys and audits, it is the procedure that must be done in making a business license requires a process that is not for a moment.

Therefore, if there is a business meal offense will be closed. Example permit establishes a new factory. Read more about Reasons Why is Indonesia Good for Business

12. Human Resources

Human resources are one of the important factors in business. If an incompetent resource or worker is employed as an employee there is a job description discrepancy. And unprofessional workers also hamper efforts to go according to their targets and expectations. For example, machine workers are not suitable for administrative work.

13. Cost Effects

Social impact on other businesses is expensive. To establish a field of large and small scale business does require a lot of capital. If capital is not sufficient the possibility of business will not work properly, it is important to take into account the smallest cost to avoid deficits and lack of funds. Example of a huge promotional cost.

14. Raw Material Problem

Unsupported raw materials can also hinder production in large and small-scale businesses. If the difficulty finding raw materials, not to mention the expensive price would make the company must be smart to find other materials with the same quality. So without the raw material, it is impossible for a business to run. For example, steelmaking raw materials.

15. Habit Problem

Bad habits certainly produce bad fruit, as well as in the business world. If workers and employers and the surrounding people have bad habits and adversely, of course, the impact to the result in a product or business. Another impact consumers and customers are reluctant to work together let alone buy the product business. Examples of seller habits are not friendly to buyers.

16. Culture and Customs

Cultural traditions cannot be separated from anything, including in the business world. Cultures that make a business can survive well or not. If a good culture is still held until whenever it is no wonder the business will be lasting. If the business culture is bad, then, of course, the impact of the product is not sold and far from the buyer. Example of traditional dance teacher business. Read more about Ways How to Start A Business in Bali

17. People Trust

Trust people to a product or service offered would affect the progress or not of a business. If the buyer alone is disappointed with the products and services do not expect to buy back the products and services. It’s important to build the trust of people around and buyers to keep the business running smoothly and durable. Examples of food and clothing business. Read more about Business Ethics In Indonesia

Thus the explanation of social factors that affect business in Indonesia, this is the basis for how to build a business grows into a large and lasting. Maybe useful.