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

F
A C T O R S
Individual Factors Environm ental Factors SocioCultural 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

J R S Tutorials

STAG INTERNATIONAL

Career Launcher

Environmental factors
Technological

P E S T

Social
Economical

Political

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 areCAPITAL

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 Labour Quality rather than Quantity

Germany-1938

Japan-1945
www.bbchindi.com/editors/main/article

USA-1950

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
Customers 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 Technology
Fore sight of new Technology

Queries???????????

Socio-cultural factors influencing Entrepreneurship

Legitimacy of Entrepreneurship

Social Mobility

Marginality

Security

Family background

Relatives, Friends and Teachers

Religion

Social status

Legitimacy of Entrepreneurship
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.

Social Mobility
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.

Marginality
The term social marginality refers to a state of being excluded from the

social fabric and being treated as an outsider.

Security
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

Family background
Nature of family background

Business background Non business background

Support by family whatever the background is.

Relatives, Friends and Teachers

Risk taking ability of all those Confidence of all those on personnel Willingness of all those to help

Support systems for entrepreneurship

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