National factors are factors determined by the government such as taxation.This is the process in which the government influences businesses financial decisions, for example if taxes are increased by the government then your cost will increase meaning your profit margin will reduce, profit margin refers to the percentage of revenue remaining after all costs taxes..etc have been deducted. Paying tax is compulsory and it is based on workers income and business profits or added costs to soome goods, services and transactions. This means it affects a start-up business by reducing the profit they would make as majority of it would go to paying taxes to the government.Another national factor is interest rates, also referred to as the cost of loans. When starting up a business you are likely to take out a loan from your bank or a loan company to buy accessories, products,machinery …etc unless you are able to provide your own funds. If the interest rate increases then you will have to spend more of your own earning to pay interest on your loan which you borrowed, this decreases the profit which slows down the growth of your company/business. However when interest rates remain low it makes it easier for a business to pay back the loan borrowed also take out a loan which stimulates the growth and increases profitability.As well as this, exchange rates are also a national factor because you get to decide if your goods and services are worth more or less abroad depending on the rates. Exchange rates are the value of one currency converted into another. If your are importing goods or exporting them then you want to compare different exchange rates because you want to make profit on all your products rather than losing out because of the rates. If you are importing goods from another currency then you want to make sure you are checking the exchange rate before selling it so you can make a profit at the end of it. Sometimes there’s an impact on a business because of the appreciation and depreciation situation of rates when exporting or importing goods.Inflation is also another national factor,Inflation is the general increase in prices and fall in the purchasing value of money also the rate at which the general level of prices for goods and services is rising. High inflation rates encourages people to withdraw money from banks and spend it on goods and services because it’s good for the business but bad for the bank. However it will affect a business because they would have to pay more for supplies and wages for the employees, this means the business could run out of money because the employees could leave due to less pay and manufacturing will be slow also the supplies may not come in on time which could result to the business making no money at all. During an inflation the cost of products go up which means the business would have to increase the price of products which will then result to losing customers so it would impact a start-up business massively.During deflation interest rates are low so it can be the best time to get a loan, but unemployment is high and it usually leads to a recession.