Factors Influencing Entrepreneurship

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.

http://en.wikipedia.org/wiki/Entrepreneurship

FACTORS

Individual

Factors

Environmental Factors

Socio-Cultural Factors

Support Systems

As per our syllabus

Factors..Individual

Desire to do some thing

new Educational Occupational

Individual Fact…..1- Desire to do some thing new

Need Achievement

Social Status

Individual Fact…..Educational background:

Up to a certain limit, it influence.

Occupational Background

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Environmental factorsTechnologic

al

Political

PEST

Political………….It consists of Political and Legal factors both. The countries like India has a greater impact

of these two.

Economical…………From 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………… 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.

http://www.nenonline.org/jsp/resources/resources.jsp

Labour………….Availability of LabourQuality rather than Quantity

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Germany-1938

USA-1950Japan-1945

Raw Material…….. The necessity of raw materials hardly needs

any emphasis for establishing any industrial activity, and therefore, its influence in the emergence of Entrepreneurship.

Market………Customer’s prospect………….

Practically , monopoly in a particular market becomes more influential for entrepreneurship than a competitive market

Source:http://iie.gov.in/

TECHNOLOGICAL………Awareness of new TechnologyFore sight of new Technology

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Socio-cultural factors influencing Entrepreneurship

Legitimacy of Entrepreneurship

Social Mobility

Security

Marginality

Family background

Relatives, Friends and Teachers

Religion

Social status

Relevance of a system of norms and values within a socio-cultural setting for the emergence of entrepreneurship.

Schumpeter recognizes importance of such legitimacy in terms of appropriate social climate for entrepreneurship.

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

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.

Legitimacy of Entrepreneurship

Involve the degree of mobility, both social and geographical

The opinion that the social mobility is crucial for entrepreneurial emergence is not unanimous

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.

Social Mobility

The term social marginality refers to a state of being excluded from the social fabric and being treated as an outsider.

Marginality

Several scholars have advocated entrepreneurial security as an important facilitator of entrepreneurial behaviors

No consensus on amount of security needed

Peterson and Berger maintain that entrepreneurship is more likely to emerge under tribulent condition than under condition of equilibrium

Security is a significant factor for entrepreneurship development because individuals may be fearful of losing his economic assets by behaviouring entrepreneurially

Security

Nature of family backgroundBusiness backgroundNon business background

Support by family whatever the background is…….

Family background

Risk taking ability of all those

Confidence of all those on personnel

Willingness of all those to help

Relatives, Friends and Teachers

Informing businesses of the measures of the support systems to entrepreneurship;

Disseminating information on the services provided by other entrepreneurship supporting funds and foundations;

Providing free consultations to businesses in their starting phase;

Providing the starting businesses with a package of the related materials

Favorable market condition for the product to be introduced

Support systems for entrepreneurship

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