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Unit - II Origin of Entrepreneurs / Social Factors Influencing

Unit - II Origin of Entrepreneurs / Social Factors Influencing

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Published by: suruthee on Nov 29, 2009
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UNIT - IIORIGIN OF ENTREPRENEURS /SOCIAL FACTORS INFLUENCING THE EMERGENCE OF ENTREPS.1. Disturbed Childhood
A child may be continuously rejected by parents, friends & others. All dominatehim. So he needs a relief. He may destroy himself by depression or became verycreative & enterprising. He want to dominate and achieve something. Organizationbecomes a sours to achieve this. So he starts his own enterprise.
2. Rejected Group
Entrepreneurs emerge as a group, whenThe group is not recognized in the society
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Contract with important social networks are denied.
3. Religion & Culture
Some religion & cultural values encourage money making, status & risk takingwhile others may discourage these.Following religion & cultural groups are enterprising-Marwarrs parsees, Jain, Chettiars in India-Protestants in UK & US-Samurai in Japan-Yoruba in Nigeria-Kikuyu in Kenya
4. Age of Entry
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2/3 of entrepreneurs start enterprise before 25
th
age. But it differs amongcommunity.-Kamma community start earlie-Kapu & Brahmin start the enterprise in young age.-Vysya start in old age with experience.
5. Family background
-If family members have political influence, or in high status jobs, one canbecome entrepreneur 
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-Youngsters in joint family may get moral & financial support.-In-laws may make one as a partner or help him to start ones own business.
6. Education
-Technically educated persons may start manufacturing units with somemanagerial training.-Arts/Commerce/uneducated people can start service sector/trading center/low-technology units.
7. Experience
-25% entrepreneurs are inexperienced. They start after technical &managerial training.-32% prefer the same line of business.-40% prefer different line of business.
8. Type of ownership
-55% prefer sole proprefership concern-25% prefer partnership concern-20% prefer private limited-5% prefer public limited concern
9. Location
-60% prefer backward areas for subsides & concessions. Govt provide builtin industrial estate with shed and infrastructure facilities.-40% prefer developed areas for convenience.
10. Environment
Environmental factors like Govt policy, political stability, peace within & betweenthe countries, cost of import, competition, infrastructure, financial support by banks &financial institutions, etc, influence the emergence of entrepreneurs.
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ECONOMIC ENVIRONMENT OF BUSINESSECONOMIC ENVIRONMENTAL FACTORS INFLUENCING ENTREPRENEURS1. Basic infrastructure
Good road, seaway, communication facility, water, power encourages entreps.These provided by the Govt. This speeds up production & trade. This reduces cost of production. In rural & backward areas such facilities are not provided.
2. Capital
-Rigid norms of banks & financial institutions. (Risk free projects & existingunits are preferred due to the following problems).-High rate of interest-Low capital market (share / debenture / bond) awareness.-High import cost of technology-Rigid foreign exchange regulations-Slow apply of raw materials & price fluctuations increases working capitalneed.-Govt. should provide financial assistance or act as guarantor in raising loans.
3. Raw material
-Right quantity, quality of raw materials at reasonable price are not availablenear the industry.-Govt should supply scarce materials in time or it may provide suppliersinformation.-Raw material import should be liberalized-Govt. should encourage R&D and wide network of distribution centers.
4. Labour 
-Graduates are not willing to join in the avialable jobs due to status, salary othey prefer only selected jobs. (ie. unemployability)-Shortage of skilled labours. Now Govt. initiates technical, electrical,management education. But knowledge works are available more than manualworkers.
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Manual works are immobile due to language, culture & sentiment. Lesscontact between employer and manual job seekers. Because they don’t watchadvertisement. Govt & private employment services are increasing the contact.
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