1. The business climate and the political investment climate
Underlying question:
What factors external to the enterprise affect the recurrent costs of doing business?
How easy or difficult is it (likely to be) for enterprise owners to make and retain profits?
How is the behaviour of government likely to impact on the ability of enterprise owners to make and retain profits?
Main direct source of useful information:
Managers of existing businesses
All potential investors
Degree to which indicators can be quantified:
Mainly high
Mainly low

2. Changes in the investment climate reflect changes in:
Changes in market variables affecting expected profitability.
Changes in business climate variables.
Changes in expectations about government behaviour in relation to investment (political investment climate)