Environment factors influencing Entrepreneurship : Environment factors influencing Entrepreneurship Entrepreneurial Environment : Entrepreneurial Environment Environment – Sum total of external factors within which an enterprise operates.
Entrepreneurs do not emerge at their own.
Characteristics of Environment:1. Dynamic2. Uncontrollable and External3. Affect the business in varying degrees4. Poses threats and offers opportunities Factors Affecting Entrepreneurship : Factors Affecting Entrepreneurship Factors Economic Factors Social Factors Psychological Factors Facilitating Factors Competitive Factors Economic Factors : Economic Factors Financial Assistance from Institutional Sources
Accomodation in Industrial Estate
Attitude of the Government
Encouragement from Large Business
Machinery on Hire-Purchase
Size and Composition of Market Social Factors : Social Factors Family Background
Social Marginality Psychological Factors : Psychological Factors Need Achievement
Withdrawal of Status Respect Competitive Factors : Competitive Factors Porter’s 5Forces Model Potential Entrants Rivalry Among Existing Firms Substitutes Suppliers Buyers Facilitating Factors : Facilitating Factors Experience and Training
Arrangement of Finance
Occupational and Geographical Mobility Locational Mobility of Entrepreneurs : Locational Mobility of Entrepreneurs Represents the drive and initiative to move to other places in search of better opportunities.
If entrepreneurial class is limited, there will be strong regional imbalances in industrial development.
Key factors influencing:1. Resources2. Experience3. Education4. Language5. Culture6. Nature of Enterprise