Factors Influencing Entrepreneurship
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Factors Influencing Entrepreneurship
Ashish Kumar(05) Sushil Mohan(33)
Entrepreneurship is the act of being an entrepreneur which is a French word meaning one who undertakes and endeavor.
A C T O R S
As per our syllabus
1- Desire to do some thing new
vUp to a certain limit, it influence.
J R S Tutorials
Environmental factorsP E S T
Political.It consists of Political and Legal factors both. The countries like India has a greater impact of these two.
EconomicalFrom a strictly economic point of view, it can be said that the same factors which promote economic development, account for the emergence of entrepreneurship also. These are
CAPITAL LABOUR RAW MATERIAL MARKET
Capital is one of the most important perquisite to establish the enterprise. Availability of capital facilitates the Entrepreneur to bring together the Land of one, Machine of another, and Raw Material of yet another to combine them to produce goods. Capital is, therefore, regard as Lubricant to the process of production.
Labour.Availability of Labour Quality rather than Quantity
The necessity of raw materials hardly needs any emphasis for establishing any industrial activity, and therefore, its influence in the emergence of Entrepreneurship.
Customers prospect. Practically , monopoly in a particular market becomes more influential for entrepreneurship than a competitive market
TECHNOLOGICALvAwareness of new Technology vFore sight of new Technology
Socio-cultural factors influencing Entrepreneurship
Legitimacy of Entrepreneurship
Relatives, Friends and Teachers
Legitimacy of Entrepreneurshipq Relevance of a system of norms and values within a sociocultural setting for the emergence of entrepreneurship.
q Schumpeter recognizes importance of such legitimacy in terms of appropriate social climate for entrepreneurship. q q To increase the legitimacy of entrepreneurship, some scholars have proposed the need for a change in traditional values, which are assumes to be opposed to entrepreneurship q q Scholars like McClelland also point out that a complete change may not be necessary but traditional values can be re interpreted and synthesized with newer values.
Social Mobilityq Involve the degree of mobility, both social and geographical
q q The opinion that the social mobility is crucial for entrepreneurial emergence is not unanimous
q q Some scholars have the view that a high degree of mobility is conducive to entrepreneurship, in contrast there is another group of scholars, think that a lack of mobility possibility promotes entrepreneurship.
Marginalityq The term social marginality refers to a state of being excluded from the social fabric and being treated as an outsider. q q
Securityq Several scholars have advocated entrepreneurial security as an important facilitator of entrepreneurial behaviors q q No consensus on amount of security needed q q Peterson and Berger maintain that entrepreneurship is more likely to emerge under tribulent condition than under condition of equilibrium
q Security is a significant factor for entrepreneurship development because individuals may be fearful of losing his economic assets by behaviouring entrepreneurially
Family backgroundq Nature of family background Business background Non business background q q Support by family whatever the background is. q
Relatives, Friends and Teachersq Risk taking ability of all those q q Confidence of all those on personnel q q Willingness of all those to help
Support systems for entrepreneurshipq Informing businesses of the measures of the support systems to entrepreneurship;
q Disseminating information on the services provided by other entrepreneurship supporting funds and foundations;
q Providing free consultations to businesses in their starting phase;
q Providing the starting businesses with a package of the related materials q q Favorable market condition for the product to be introduced q q