Location of Business

• For a primary producer, it is important to be located close to markets. He needs to be located in an area with competition as this will attract people. Power supply needs to uninterrupted and there needs to be an adequate amount of raw materials and reliable supply to ensure that production does not stop. Being near to suppliers is not important. It is important to know land and planning rules. There needs to labour supply with required skill. It needs to ahve good communication with manufacturers. Transport facilities are very important as goods need to be moved quickly to market and raw materials needs to be supplied quickly. Government incentives will also affect location. It needs to be in a secure area to prevent theft. It does not need to be accessible to people. Personal factors are also not important. Industrial inertia is important.
• For a wholesaler, closeness to markets is very important. It needs to be located where there is competition. It does not rely in power supply or raw materials. It needs to be loacted close to suppliers. It needs to know about land and planning rules. There must be labour available to work in the warehouse. It needs good communication to contact buyers. Transport facilities are very important consideration. Government is unlikely to affect its location. It needs to be located in a secure area. It is not important to be accesible. Industrial inertia is not important. It may locate where it finds personal pleasure.