Politics, whether we are aware or not, covers almost every aspect of our life from the healthcare system to what we may study at school right down to the groceries we purchase at our local supermarkets. Similarly, politics play a huge role in business organisations on all levels; international, regional, national or local. For example, the success or loss of an international business organisation may be subject to rules and regulations imposed by the country the international business desires to potentially develop due to differing political environments which may either hinder or promote the nature of the business.

Similarly, small business organisations are likely to advance or suffer a loss due to various political factors. The first factor that may have an impact on a small business organisation is the leadership of which the business shall progress; in the United Kingdom the current leading political parties are the Conservative Party, Labour Party and the Liberal Democrats. From amongst these main Parties, the leading party dictates the economic policies that must be followed by all those in the economic sector. However as national elections come and go, the leading parties change which also lead to a change in economic policies, though not always. This becomes a challenge for business organisations as it means that they have to constantly readjust and reconsider their activity to ensure legality and to maintain their practise in accordance to the rules and regulations of the new political leadership.  These changes will affect the profit or loss of that business as new laws are put in place or as previous ones are removed. For example, after the law for disabled-access was put in place business were required to adjust to comply with this law ensure equality for all and discrimination against none.

Business organisation must also abide by environmental laws as the environment is a continuous key political issue that remains on the list amongst others. Therefore small business organisations must consider how to execute their rubbish and to practise recycling, for example, whereas larger business corporations would be involved in reducing carbon emissions and seeking renewable energy sources and other similar areas that produce the least possible damage to the environment. Failure to abide by environmental laws may result in fines and even lead to court cases because the environment is shared so we must work collectively to maintain it for the future generations to come.

Alternatively, the positive impact of politics on business organisation is globalisation. Globalisation can be defined in many different ways but can be simply understood as the ease and fast-paced movement of information, ideas, money, people and goods across as well as through the world allowing wider, cheaper, diverse and quicker services. This is a massive advantage for business organisations as it allows them to easily access products and goods due to friendlier trade barriers between countries. It also allows business organisations in tourist-populated cities such as London to reach a wide range of customers due to the greater number of tourists throughout the year contributing to the success of the business.

From the above, it is clear that politics is a key aspect of the business and enterprise sector like many other sectors. This means that those who wish to start up their own business should be aware of the legal requirements to ensure the best level of progress of their business.