The environment within which the businesses operate has a great influence on the attractiveness of any opportunity. By business environment, we are referring not only to the physical environment, which is important and increasingly so, but also the political, economic, geographical, legal and regulatory contexts. Political instability, for example, renders business opportunities unattractive in many countries, especially for ventures requiring high investment with a long payback period. Similarly, inflation and exchange rate fluctuations, or a week judiciary system, are not a good environment to start a business, even if the potential returns are high. The lack of infrastructure and services (such as roads, electricity, water supply, telecommunications, transportation, and even schools and hospitals) also affect the attractiveness of an opportunity in a given environment
