Definition of Business External Environment The Small Business External Environment can be defined as the events, forces, conditions, and entities surrounding a small business that influence its activities, choices, and decisions. The external factors affect a small business’s abilities to be successful and build relationships with customers. The external environment of a small business has two components, commonly known as theMacro-Environment and Micro-Environment. What is the Micro-Environment of a Small Business? The small business’s micro (external) environment is formed by the individuals and factors within the immediate area of operation that directly influence its business operations and ability to serve customers. There is direct contactRead More →