Entrepreneurship Development
Chapter 5
ENTREPRENEURSHIP DEVELOPMENT ENVIRONMENT
Entrepreneurship is not an inborn skill; it is a product of environment. It involves a complex of economic and social behavior. To be successful, an entrepreneur has to remain dynamic and responsible to the whole environment. Entrepreneurship can hardly survive under any given circumstances. It can flourish only under right environment. It is a part of total system. The social values, culture, government policies, political system, technology, economic conditions, laws, etc influence the growth of entrepreneurship.
In fact, the entrepreneurship can not be kept aloof from the changing social values, ideologies, new emerging aspirations, environmental pressures, religious beliefs, consumer wants, and society needs etc. Business is a system made up of certain environmental factors which require the entrepreneurs to adopt a dynamic attitude and a new strategy of their own.
Entrepreneurship environment refers to the various facets within which enterprises- big, small and other have to operate. The enterprise is therefore, influenced by the environment. By and large, entrepreneurship is influenced by an environment created by political, social, economic, national, legal forces, etc.
Entrepreneurial environment is broadly classified into six important segments:[1]
1. Political environment includes:
(a) Political atmosphere
(b) Quality of leadership
2. Economic environment includes:
(a) Economic policies
(b) Labor
(c) Trade
(d) Tariffs
(e) Incentives
(f) Subsidies
3. Social environment includes:
(a) Consumer
(b) Labor
(c) Attitude
(e) Opinion
(f) Motives
4. Technological environment include:
(a) Competition & risk
(b) Efficiency
(c) Productivity
(d) Profitability
5. Legal environment include:
(a) Rules & Regulation
(b) Legal obligation
6. Cultural environment includes:
(a)Structural aspiration
(b) Values.
POLITICAL ENVIRONMENT
Political environment affects the
ENTREPRENEURSHIP DEVELOPMENT ENVIRONMENT
Entrepreneurship is not an inborn skill; it is a product of environment. It involves a complex of economic and social behavior. To be successful, an entrepreneur has to remain dynamic and responsible to the whole environment. Entrepreneurship can hardly survive under any given circumstances. It can flourish only under right environment. It is a part of total system. The social values, culture, government policies, political system, technology, economic conditions, laws, etc influence the growth of entrepreneurship.
In fact, the entrepreneurship can not be kept aloof from the changing social values, ideologies, new emerging aspirations, environmental pressures, religious beliefs, consumer wants, and society needs etc. Business is a system made up of certain environmental factors which require the entrepreneurs to adopt a dynamic attitude and a new strategy of their own.
Entrepreneurship environment refers to the various facets within which enterprises- big, small and other have to operate. The enterprise is therefore, influenced by the environment. By and large, entrepreneurship is influenced by an environment created by political, social, economic, national, legal forces, etc.
Entrepreneurial environment is broadly classified into six important segments:[1]
1. Political environment includes:
(a) Political atmosphere
(b) Quality of leadership
2. Economic environment includes:
(a) Economic policies
(b) Labor
(c) Trade
(d) Tariffs
(e) Incentives
(f) Subsidies
3. Social environment includes:
(a) Consumer
(b) Labor
(c) Attitude
(e) Opinion
(f) Motives
4. Technological environment include:
(a) Competition & risk
(b) Efficiency
(c) Productivity
(d) Profitability
5. Legal environment include:
(a) Rules & Regulation
(b) Legal obligation
6. Cultural environment includes:
(a)Structural aspiration
(b) Values.
POLITICAL ENVIRONMENT
Political environment affects the