Social

Social factors relate to the way people live and the nature of society:

Attitudes to saving

Savings are the money people put into bank accounts to save their money for the future. If there is a tendency for people to save, less money will be spent in the economy, but if people feel that saving is not important, e.g., when interest rates are low, they will tend to spend more.

Demographic trends

When we talk about demographics, we are talking about the composition or shape of the population. These trends can impact businesses in both a positive and negative way. For example, Wales has an ageing population, i.e., the percentage of population over sixty-five has increased from 16.4% in 2011 to 18.6% in 2021 (2021 Census). This means that businesses that appeal to this demographic group will be more likely to be successful.

Consumer tastes/preferences

Consumer tastes can change quickly and affect the things they buy and the services they use. We can see changes in consumer tastes by looking at the changes to their buying habits. For example, in recent years there has been a huge growth in purchases of e-bikes, smart watches and electric cars.

Changes in consumer tastes can have a negative and positive impact on businesses depending on what that change is:

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