Components of Business Environment Classification Framework (BECF) in Kenya:
1. Economic Forces:
- Economic growth: GDP growth rate, per capita income
- Inflation: Consumer Price Index (CPI)
- Interest rates: Central Bank of Kenya (CBK) benchmark rate
- Exchange rates: Kenya Shilling to USD
- Labor market: Unemployment rates, labor force size
2. Socio-Cultural Forces:
- Population: Size, growth rate, age distribution
- Education: Literacy rates, school enrollment
- Health: Life expectancy, healthcare access
- Culture: Values, beliefs, social norms
- Demographic trends: Urbanization, immigration
3. Technological Forces:
- Adoption of technology: Internet penetration, mobile devices
- Innovation: Research and development expenditure
- Automation: Use of robotics and artificial intelligence
- Technological infrastructure: Telecoms, electricity, transportation
- Industry 4.0: Digitization and interconnectedness
4. Environmental Forces:
- Climate change: Temperature, rainfall patterns
- Pollution: Air, water, land
- Resource depletion: Deforestation, water scarcity
- Environmental regulations: Waste management, emissions standards
- Sustainability initiatives: Green technologies, circular economy
5. Political-Legal Forces:
- Political stability: Government legitimacy, rule of law
- Regulatory framework: Business laws, tax policies
- Corruption: Transparency International Corruption Perception Index
- Government support: Tax incentives, infrastructure investment
- Trade agreements: Regional and international partnerships
6. Competitive Forces:
- Market size: Number of customers, potential revenue
- Market competition: Presence of rivals and their strengths
- Barriers to entry: Regulation, capital requirements
- Competitive advantage: Unique value proposition, innovation
- Porter's Five Forces: Supplier power, buyer power, industry rivalry
7. Global Forces:
- Globalization: Trade, investment, migration
- Technological interconnectedness: Social media, e-commerce
- Economic integration: Regional Economic Communities (RECs)
- International organizations: World Bank, IMF
- Multinational corporations: Foreign presence and influence