Importance of personal factor in decisions on locating enterprises

Abstract

This paper focuses on the personal factor and its importance in entrepreneur's decision-making process when choosing location of a business. The theoretical part of the paper has been supplemented with a case study, which is a result of an in-depth questionnaire from interviewing co-owners of a small architectural studio. The paper confirms the thesis that, apart from a number of factors resulting from investment requirements and investment climate attractions, the final choice of a business location is affected by personal motives. Personal features of decision makers (their abilities and limitations) as well as motives and intentions do play role in the decision-making process. In line with behavioral approach to the problem, the personal factor in the decision-making process often governs selection of a business location. From a decision-maker’s point of view, satisfactory and not an optimal location is typically selected.