Role of Modern Factors in the Process of Choosing a Location of an Enterprise

Abstract

Decisions on locating enterprises in an area are complex and involve an in-depth analysis of many factors. Apparently, traditional factors which are often identified with cost-related factors are not the standard or a sole basis for choosing a location for an enterprise. New factors continue to emerge as a result of the current technological progress and development of the society. They are often referred to as modern factors and they accompany the birth of new businesses which respond to contemporary consumer needs and create new products and services. In principle, a location decision is influenced by many factors, classified both to traditional (classical) factors and to modern factors. Furthermore, the literature offers a distinction between hard and soft factorsi.e. measurable and non-measurable factors, having a different weight in a decision-making process. Their impact is dependent on the type of business and a size of an enterprise and the stage of decision-making. It is common that the human factor, related to decision-makers’ characteristics and motives, plays an important role in the decision-making process. The factor is rather difficult to measure. This paper discusses and identifies the importance of the modern factors, with a particular emphasis of the personal aspect of the decision-making process in matters of location of enterprises.