Environment factors influencing Entrepreneurship

Entrepreneurial Environment
Environment Sum total of external factors within which an enterprise operates. Entrepreneurs do not emerge at their own. Characteristics of Environment: 1. Dynamic 2. Uncontrollable and External 3. Affect the business in varying degrees 4. Poses threats and offers opportunities

Factors Affecting Entrepreneurship

Factors
Economic Factors Social Factors Psychological Factors Facilitating Factors

Competitive Factors

Economic Factors
Financial Assistance from Institutional Sources Accomodation in Industrial Estate Attitude of the Government Encouragement from Large Business Machinery on Hire-Purchase Labour Conditions Raw Materials Size and Composition of Market

Social Factors
Family Background Social Status Religion Social Mobility Social Marginality

Psychological Factors
Need Achievement Withdrawal of Status Respect

Competitive Factors
Porters 5Forces Model
Potential Entrants

Suppliers

Rivalry Among Existing Firms

Buyers

Substitutes

Facilitating Factors
Experience and Training Arrangement of Finance Occupational and Geographical Mobility

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. Resources 2. Experience 3. Education 4. Language 5. Culture 6. Nature of Enterprise