factors influencing entrepreneurship
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Factors Influencing EntrepreneurshipTRANSCRIPT
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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