Section 9 - Location of a Business

Introduction

The location of a business, particularly a start-up, plays a major role in it's future success or failure. 

The ideal location should aim to maximise the profits while keeping the cost and expenses to a minium. 

Any business needs to have a market available, as well as a local skilled workforce. Without customers, the business would cease to exist. Hence choosing a location with the best market audience is a winning formula. 

Government incentives can also play a major role in the location of a business. Nissan, for example, built a plant in Sunderland partly because of government loans and grants. The role of technology and infrastructure and costs are discussed and their impact on choosing the right location.

Activity 24 - Can you think of an example of a business which chose the wrong location? What happened to them?