With a clear overview of these factors, you can better understand the position and potential of your pilot area.

Tips for use

Make a large printout of the PESTLE Canvas template and use it during a brainstorm. Get inspiration from the PESTLE example that was made for the pilot area Amsterdam IJ.

How to use

Each letter in the word PESTLE stands for a category of factors. For each category determine if there are trends or developments that have an impact on your pilot area. Factors can negatively affect a pilot are, but they can also represent opportunities. Once you have determined which factors influence your pilot area you can determine whether they have a positive or a negative influence. You can do this for instance by adding a color: red for negative and green for positive.

Political factors 

Decisions made by the government are political factors. Governments have a great impact on the public facilities in a country, but also on the economy. Think of decisions regarding policies, laws, restrictions, tariffs, tax regulations, governmental programs and grants. Write down those political factors that influence your pilot area.

Economic factors 

The economic situation of a country greatly influences how your pilot area can operate and be successful. Think of economic factors like interest rates, exchange rates, inflation, economic growth, unemployment etc. Write down those rates or other economic factors that have an impact on your pilot area. 

Social factors 

     Social factors have to do with the demographics within a country or region and with cultural aspects. Important demographical statistics are age distribution, education levels, population growth rate, ratio of males to females, etc. Cultural aspects consist of the attitudes, beliefs or values of the population. Write down the important demographics of the population of your environment and their cultural aspects.  

Technological factors 

   Technology advancement of your market determines in which technologies your pilot area must invest to remain up-to-date. Technology factors are for instance automation, technical innovations, R&D investments, and rate of technology exchange. Write down what kind of technologies there are important in your area and how advanced they are.   

Legal factors 

There is a wide range of laws that influence the way your pilot area operates. Think of employment regulations, privacy and data security, discrimination laws, tax laws, advertising and marketing laws, online pilot area laws, and many others. Write down those laws that influence or might influence your pilot area.

Environmental factors

Environmental factors consist of aspects like weather, geographical location, climate and climate change. Elements that influence the ecology are also important, like limited natural resources, recycling, waste disposal, and other elements. Write down those environmental factors that have an impact on your pilot area.