The term business environment is defined by several business experts and economists. What is the definition given by Keith Davis in this context? How can the demographic environment influence business growth?

According to Keith Davis, "Business environment is aggregate of all conditions, events and influences that surround and affect the business". The Demographic environment influence business growth in the following way: The demographic environment includes the gender ratio, size and growth of population, life expectancy of the people, rural-urban distribution of population, the technological skills, educational levels and language skills of labour force. All these demographic features have an important bearing on the functioning of business firms. For example, huge populated countries such as India and China can adopt labour-intensive technologies than capital intensive ones to give employment to its labour force. Similarly, the population of kids will decide product range and space for such products to be offered in a mall while planning logistics. Social Cultural and Demographic Factors influencing business are as under: Birth and death rates Life expectancy rates Attitude towards work and organization Attitude towards government Attitude towards authority Ethical norms Value system Composition of work force Attitude towards income, savings and capital formation Social ethos towards work and organization.