Business environment refers to the combination of both internal and external factors that greatly affect business operations and its performance. 

What is Business Environment 

Business environment involves various factors that affect the performance and growth of the business in day to day operations.

Business environment includes economic conditions, technological advancements, supply and demand, political and legal regulations, innovation in technology and various cultural factors.

Organisations must thoroughly understand the business environment as it improves their performance and enables them to face challenges, identify opportunities and threats .