Factors Influencing Entrepreneurship
The main factors influencing entrepreneurship are cultural, political and economic atmosphere; accessibility to resources; and the expertise and mind-set of the entrepreneur. Let us see how these factors influence entrepreneurship. |
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Culture has a great impact on entrepreneurship. Generally people doing traditional business do not like to work as employees. Some people are not suitable for the conventional jobs because of the influence of a powerful culture of self-rule or other motives. Teachers at business schools insist the students on becoming entrepreneurs though the prospect price is sky-scraping. Any society that believes in consumerism promotes entrepreneurship in that region because profits from a trade turn out to be higher than profits from a service. On the other hand, people employed in various services force their kids to get some safe job and thus suppress their zeal for free enterprise at a very tender age. A culture where people do not believe in hard work and are afraid of taking risk is not favorable for entrepreneurship.
Political environment also affects entrepreneurship. Unsteady political situations, ever-changing administrative policies, high taxes hinder entrepreneurship. Governmental policies to develop transportation, communication network, industrial hubs and all other facilities promote entrepreneurship. The economy plays a significant role in the growth of an enterprise. Income levels and purchasing capability of people influence any business of that region. In the times of economic slump, the buying power and investment turn down and hamper entrepreneurship badly. Strong and stable economic conditions encourage business.
Availability of various resources like money, man power, raw materials, communication and transportation facilities, etc. play a major role in influencing any enterprise. Besides all these factors, the growth of an enterprise depends upon the skills and mind-set of the entrepreneur. He must be hard-working, determined, good manager with broad business plan, able to face unforeseen events and risks. He must know the needs and targets and have a penchant to achieve them.
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