Businesses do not operate freely. Governments set laws to protect customers and workers, and new technology constantly changes how firms produce, sell and communicate. Both shape what a business can and must do.
Consumer laws
Consumer protection laws make sure customers are treated fairly. In outline, they require that:
- Goods are of satisfactory quality and as described.
- Products are safe to use.
- Advertising is honest and not misleading.
A shop selling a faulty kettle described as "new" could be breaking the law, and must offer a refund or replacement.
Employment laws
Employment laws protect workers. In outline, they cover:
- A minimum wage that employers must pay.
- Safe and healthy working conditions.
- Protection from unfair dismissal and discrimination.
- Rights such as breaks and holiday pay.
These raise costs for firms but ensure workers are treated fairly, which also improves morale.
How government affects business
Beyond laws, government influences business through:
- Taxes — on profits, sales and wages, affecting costs and prices.
- Regulation — rules on safety, the environment and trading.
- Support — grants, training or advice to help firms grow.
How new technology changes business
Technology reshapes how firms work:
- E-commerce — selling online reaches customers worldwide.
- Automation — machines speed up production and cut costs, but may replace some jobs.
- Communication — email and video link teams and customers instantly.
- Data and marketing — firms target customers more precisely online.
Technology brings opportunities and challenges: it can cut costs and open new markets, but needs investment and training, and firms that ignore it risk being left behind.