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Factors Influencing Business Capital Investment (2019 Update)

AS, A Level, IB, BTEC National, BTEC Tech Award
AQA, Edexcel, OCR, IB, Eduqas, WJEC

Last updated 4 Oct 2019

Here is a short revision video looking at some of the key factors that might influence the level of business capital investment.

Factors Influencing Business Capital Investment (2019 Update)

Summary of key factors

  1. Rate of growth of market demand
  2. Borrowing costs (i.e. interest rates on business loans)
  3. State of business confidence / pessimism
  4. Rate of corporate taxation on company profits
  5. Inflation expectations (consider both inflationary and deflationary pressures)
  6. Pace of technological change and international competition


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